stockwatchPost says Thompson Creek needs 30% higher moly prices
2013-12-13 09:40 ET - In the News
The Financial Post reports in its Friday edition Thompson Creek Metals needs metal prices to rise 30 per cent from current levels to avoid some form of debt restructuring, CIBC World Markets warned. The Post's Jonathan Ratner quotes analyst Tom Meyer as saying Thompson Creek is making positive progress at the Mt. Milligan copper and gold project despite lowering his near-term outlook. As a result, he does not foresee any near-term liquidity issues and considers the recent share price pullback as a buying opportunity, albeit a risky one. "The path of the metal prices is the key variable but Thompson Creek has time in its favour, in our view," Mr. Meyer told clients. He reiterated his sector perform rating and $3.50 price target. "The importance of the Mt. Milligan project to the company should not be ignored, in our view, as it essentially transforms the company into a diversified miner," he said. The analyst noted molybdenum currently accounts for 100 per cent of the company's sales, but is forecast to fall to 40 per cent in 2014. He highlighted the miner's high financial risk given it has $900-million (U.S.) in required debt repayments beginning December, 2017, and running through to May, 2019.