Thompson Creek Metals Co. (TSE:TCM), a producer of molybdenum from mines in Canada and the U.S., posted a weaker-than-expected quarterly loss and said will stop mining at its Thompson Creek molybdenum mine when its current production phase is complete, likely in the fourth quarter of this year.
Fourth-quarter net loss widened to $210.5 million, or $1.24 a share, from a loss of $484.4 million, or $2.87 a share, in the year-earlier period, the Denver, Colorado-based company said in a statement after market close yesterday.
Revenue improved to $117.1 million from $99.4 million, helped by copper and gold sales.
Stripping out impairment charges, which were larger in the year-earlier period, and other one-time items, the adjusted loss expanded to $28.5 million, or 17 cents a share, from $11.9 million, or 7 cents a share.
Analysts had been calling for a loss of three cents a share on revenue of $123.7 million.
Thompson Creek produces a variety of commodities including molybdenum and copper — two widely used industrial metals — as well as gold and silver. Its Thompson Creek moly mine and mill are in Idaho while its new Mt. Milligan copper and gold mine and its Endako molybdenum mines are in British Columbia.
The company said the decision to stop mining at its Thompson Creek molybdenum was based on further weakness in the market, as well as its forecast operating costs.
It said it suspended work on the mine's next phase following a decline in the price of molybdenum in 2012.
The mine will be put on care and maintenance, which means it will not produce metal, but will be kept in good working order so production can resume if and when the market improves.
"Management intends to preserve the assets at TC Mine while it is on care and maintenance to enable the company to re-commence operations when molybdenum market conditions improve," the company said in the statement.
The Thompson Creek mine began operations in 1983 and was once Thompson Creek's flagship asset.
The company also announced yesterday that its Mt. Milligan copper and gold mine achieved commercial production on February 18.
Thompson shares climbed 7.1 percent to C$3.16 at 2:12 p.m. in Toronto, extending this year's rally to 37 percent.
Reported by Proactive Investors 20 hours ago.
Fourth-quarter net loss widened to $210.5 million, or $1.24 a share, from a loss of $484.4 million, or $2.87 a share, in the year-earlier period, the Denver, Colorado-based company said in a statement after market close yesterday.
Revenue improved to $117.1 million from $99.4 million, helped by copper and gold sales.
Stripping out impairment charges, which were larger in the year-earlier period, and other one-time items, the adjusted loss expanded to $28.5 million, or 17 cents a share, from $11.9 million, or 7 cents a share.
Analysts had been calling for a loss of three cents a share on revenue of $123.7 million.
Thompson Creek produces a variety of commodities including molybdenum and copper — two widely used industrial metals — as well as gold and silver. Its Thompson Creek moly mine and mill are in Idaho while its new Mt. Milligan copper and gold mine and its Endako molybdenum mines are in British Columbia.
The company said the decision to stop mining at its Thompson Creek molybdenum was based on further weakness in the market, as well as its forecast operating costs.
It said it suspended work on the mine's next phase following a decline in the price of molybdenum in 2012.
The mine will be put on care and maintenance, which means it will not produce metal, but will be kept in good working order so production can resume if and when the market improves.
"Management intends to preserve the assets at TC Mine while it is on care and maintenance to enable the company to re-commence operations when molybdenum market conditions improve," the company said in the statement.
The Thompson Creek mine began operations in 1983 and was once Thompson Creek's flagship asset.
The company also announced yesterday that its Mt. Milligan copper and gold mine achieved commercial production on February 18.
Thompson shares climbed 7.1 percent to C$3.16 at 2:12 p.m. in Toronto, extending this year's rally to 37 percent.
Reported by Proactive Investors 20 hours ago.