Thompson Creek cut to Hold from Buy as moly prices fall

• Thompson Creek Metals (TC +1.4%) is higher despite Deutsche Bank's downgrade to Hold from Buy with a $1.60 price target, down from $3.75, after management says profitability is no longer sufficient with current molybdenum pricing.
• The downgrade follows steps to place the namesake Thompson Creek moly mine on care and maintenance after processing stockpiled ore through the remainder of the year, and the temporary suspension of work at the Endako mine.
• Going forward, the Mount Milligan copper and gold mine will be the only mine that matters for TC, unless moly prices rise enough to re-open the two suspended operations.
• However, the firm sees continued balance sheet strain and less diversification forcing its move to downgrade.