TCM article on MSN MoneyUpdates to Jubak's Picks
Buy Thompson Creek Metals (TCMRF.O). Thanks to all the Canadian readers who responded to my June 15 column, "A safe-money bet? Think Canada," by saying, "So what took you so long?" and then offering other Canadian stock picks. I'm adding one of those, Thompson Creek Metals, to Jubak's Picks with this column.
Thompson Creek, until recently named Blue Pearl Mining, is the second-largest publicly traded producer of molybdenum in the world. During the first quarter of 2007 the company produced 3.8 million pounds of molybdenum at a cost of US$5.63 a pound. Molybdenum, which in the high-purity form produced by Thompson Creek is mainly used as a lubricant in the oil and gas industry, at that time sold for a realized price of US$25.74 a pound.
What I like about Thompson Creek - even more than that spread - is the plan to increase production by designing a mill, increasing mining activity at its existing mines and opening the new Davidson project to mining in late 2008. All these steps would increase production to 29 million pounds in 2009 from a projected 21 million pounds in 2007.
As of June 26, 2007, I'm adding shares of Thompson Creek Metals to Jubak's Picks with a target price of US$20.20 by December 2007. (Full disclosure: I will buy shares of Thompson Creek Metals for my personal portfolio three days after this column is posted.)
https://finance.sympatico.msn.ca/investing/jimjubak/article.aspx?cp-documentid=5056684