Seeking Alpha

CIBC: Thompson Creek needs 30% higher metal prices to avoid restructure

  • Thompson Creek (TC -3.6%) needs metal prices to rise ~30% to avoid some form of restructuring, CIBC warns, but the miner "has time in its favor."
  • However, the firm says TC is making positive progress at the Mt. Milligan copper and gold project, does not foresee near-term liquidity issues and considers the recent share price pullback as a buying opportunity for risk-tolerant investors.
  • The firm notes that molybdenum currently accounts for 100% of TC sales but is forecast to fall to 40% next year.
Comments (3)
  • please ignore them. they are only noise!
    12 Dec 2013, 10:46 PM Reply Like
  • Just puke from one of the WORST BANKS OUT THERE
    the thieves at cibc...

     

    /what a joke they are....rolling eyes and vomitting,,,,
    13 Dec 2013, 12:05 AM Reply Like
  • 1) "to avoid some form of restructuring".
    This is an inaccurate and misleading statement, according to standard financial definitions. There will be no "restructuring". There will be, and furthermore should be REFINANCING, in the next two years or so, which will prove VERY beneficial for TC. "Restructuring" implies an entirely different dynamic. I am more than a bit shocked that a financial analyst would make such an obvious semantic error....

     

    2) "molybdenum currently accounts for 100% of TC sales but is forecast to fall to 40% next year"
    It is extremely likely that molybdenum will be much less than 40% of sales in FY 2014.

     

    3) "considers the recent share price pullback as a buying opportunity for risk-tolerant investors"
    Having read the entire report, this is the best takeaway, and possibly the truest statement in it....
    This stock should be purchased now, and put away for 3 or more years....this is not a stock to put short term money into,
    19 Dec 2013, 12:22 AM Reply Like
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