Seriously peopleFrom longonzinc
"Being down 40% is not that bad considering, they had a bad quarter followed by a $4/lb drop in moly."
I wouldn't call this a bad quarter for any company.
"Thompson Creek achieved excellent operational performance in the first quarter of 2010 and the company is on track to achieve its production and cost guidance for the year," said Kevin Loughrey, chairman and chief executive officer.
"During the first quarter of 2010, the company produced 8.3 million pounds of molybdenum, a quarterly record, and cash cost per pound produced was $5.36 per pound, which was below our guidance of $6 to $7 per pound for the full year".
The only things that caused them to miss consensus estimates was price per pound sold lagged the market price by a month therefore averaged $14.50 per pound compared to some analysts expected $17. Also the ridiculous charge for the warrants caused the net income to be misleading.
Also from the press release "excluding the non-cash charges related to the warrants, the company's adjusted net income was $25.6-million, up from $9-million a year earlier. " Sometimes I wonder if analysts
The miss on the quarter brought us from $14 to $12. That was expected. Moving from $12 to the price right now is irrational yet very reminiscent of the drop in price that took place in 2008. That was also completely irrational. The same outcome will result here if investors wait this out. We will be back in the mid teens once the fear starts to dissipate and can move up substantially from there once north america starts to really recover.