Buy Thompson Creek Metals (TC)

12/30/2008 8:05 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Earnings and earnings expectations are up for Thompson Creek because, first, the price of the molybdenum it produces from its Canadian mines has climbed off the floor. As of June 1 the spot price had moved up to $10 a pound. That’s still down 70% for the last 12 months but up 28% for April and May, according to Deutsche Bank. And because, second,  costs are running well below projections. In the first quarter of 2009, cash costs fell to just $5.93 a pound. That was way below the $7.25 to $8.25 a pound the company had earlier told investors to expect for 2009. It doesn’t look like falling costs are a one-time phenomenon either. The company has lowered its cost projections for all of 2009 to $6.25 to $7.25 a pound. (Full disclosure: I own shares of Thompson Creek Metals in my personal portfolio.)
  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Debt Burden Exposed
01/18/2019 1:14 pm EST

Fed Chair Jerome Powell, former Fed Chair Janet Yellen and former Chair of the FDIC Sheila Bair, hav...

Keyword Image
Solid Base
01/18/2019 11:36 am EST

Crude oil is getting a boost on trade deal hopes as well as a week of optimism that global central b...