Topic: How To Invest

Can I get your view on Thompson Creek? Is it a buy at these levels?

Article Excerpt

Thompson Creek Metals, $9.86, symbol TCM on Toronto (Shares outstanding: 139.8 million; Market cap: $1.4 billion), is a Canadian molybdenum producer with mining, milling, roasting and marketing operations in Canada and the U.S. The company’s operations include the Thompson Creek mine in Idaho, a roasting facility in Langeloth, Pennsylvania, and 75% of the Endako mine and roaster in British Columbia. Molybdenum is either mined directly, or recovered as a by-product of copper mining. The metal helps strengthen alloys and high-temperature steels, and prevents them from rusting. In the three months ended March 31, 2010, Thompson Creek’s revenue jumped 62.2%, to $127.8 million from $78.8 million a year earlier. (All figures except share price and market cap in U.S. dollars.) The rise was the result of a 43% increase in the price of molybdenum, to $14.50 a pound from $10.14 a pound. Molybdenum is currently at $13.88 a pound. Excluding one-time items, the company’s earnings rose 184.4%, to $25.6 million, or $0.17…