Why Thompson Creek Shares Bounced
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of molybdenum miner Thompson Creek Minerals surged 13% today after its quarterly results and outlook topped Wall Street expectations.
So what: The stock has slumped in 2013 on headaches associated with its massive gold and copper Mt. Milligan mine, but today's Q2 beat -- adjusted EPS of $0.08 vs. the consensus of a $0.02 loss -- coupled with continued progress at Mt. Milligan, suggests that things are turning.In fact, Thompson boosted molybdenum output 58% year over year while managing to bring down costs by 49%, giving analysts plenty of good vibes over its profitability going forward.
Now what: Management still expects commercial production at Mt. Milligan to begin in the fourth quarter of this year, followed by a 12-month ramp-up period to full design production and recovery. "We are pleased to have ended the quarter with continued improvement in operational performance at both the Thompson Creek and Endako Mines," said Chairman and CEO Kevin Loughrey. "During these volatile times in the commodities markets, we continue to look for ways to reduce costs and improve efficiencies." Given Thompson's still-hefty debt load, sensitivity to resource prices, and execution risks associated with Mt. Milligan, however, the downside might be a little too big for average Fools to take on.
Interested in natural resources? Then you owe it to yourself to discover the most precious resource in the history of the world. It's not gold. Or even oil. But it's more valuable than both of them. Combined. And here's the crazy part: one emerging company already has the market cornered... and stands to make in-the-know investors boatloads of cash. We reveal all in our special 100% FREE report The 21st Century's Most Precious Natural Resource. Just click here for instant access!
The article Why Thompson Creek Shares Bounced originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.