Making The Case For Me: The Demise Of Thompson Creek

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DLP Investing
78 Followers

Summary

  • Thompson Creek has continued to crash since I called for the CEO to be replaced in October.
  • The Company's indifference to a NYSE delisting in July resulted in its current OTC status.
  • The latest Company production results and guidance create more questions than answers on the state of the Company.

 Thompson Creek Metals CompanyLast October I wrote an article arguing that Jacques Perron, CEO of Thompson Creek Metals (NYSE:TC) (now TCPTF), should be relieved of his duties. At the time, the stock was trading at around $0.50 - down from around $3.00 when Perron took the helm. On January 14th, TC's stock price hit an all time low of $0.14, triggering its delisting from the New York Stock Exchange. "The NYSE says the company is no longer suitable for listing based on 'abnormally low' price levels." That comment is up for the understatement of the young year.

The Company response was a standard press release acknowledging the delisting. The Company's release states that the shares will continue to be traded on the Toronto market, as well as over-the-counter on the OTCQX. "OTCQX is the OTC's highest market reserved for companies that meet high financial standards, provide timely news and disclosures to investors and are sponsored by a professional third-party advisor." Comforting, right?

The Company did, however, release its production figures for the fourth quarter, 2015, along with guidance for 2016. While the Company never appeared to express much concern over the notification of possible delisting that it received in July, 2015, the detail in the production release seemed such that it acted as a last ditch effort to prop the stock price:

During December, average daily mill throughput at the Mount Milligan Mine was 51,677 tonnes, with an average of 45,097 tonnes during the first half of the month and 57,847 tonnes during the second half of the month. Additionally, average daily mill throughput for the last week of December was 61,212 tonnes, with the highest day in December of 64,478 tonnes. To date in January, daily mill throughput has averaged 59,862 tonnes. . . .

"At the Mount Milligan Mine, we achieved our

This article was written by

DLP Investing profile picture
78 Followers
I am a civil engineer and individual investor. I spend a substantial amount of time reading and researching commodities, macro economic trends, and value investing strategies. With my background in the construction industry, I am able to analyze real world information compared to data provided by media outlets. I plan to eventually transition my career towards the financial sector.

Disclosure: I am/we are long TCK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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