Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Thompson Creek Metals: Reevaluating Mt. Milligan

My thesis here is that Thompson Creek's (TC) Mt. Milligan gold and copper mine is substantially less valuable than the NPV estimates presented in the now outdated NI 43-101 technical report indicate (the link is to a large file). This is the case because there have been several factors that have changed since the report's October 2009 release, including

  • Debt servicing expenses
  • Capped revenue on 52.25% of all gold sold due to a royalty issued
  • Higher energy costs

Furthermore, while the company calculated costs for a wide range of gold and copper prices it failed to do so for current metal prices.

Despite these changes the company failed to release an updated valuation estimate. While it makes mention of certain...

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