Profit in plain sight

Thompson Creek Metals said on Thursday it returned to profit in the third quarter thanks to a 28 percent rise in production and higher molybdenum prices.

Toronto-based Thompson Creek reported earnings of $31.1 million, or 22 cents a share, compared with a year-ago loss of $1.4 million, or 1 cent a share.

Excluding an unrealized loss on warrants, the company earned $51.6 million, or 36 cents a share, up from a year ago profit of $14.3 million, or 11 cents a share.

Analysts, on average, had forecast earnings of 20 cents a share, according to Thomson Reuters.

Revenue rose 41 percent to $161.8 million from $111.8 million a year earlier.

Thompson Creek said it produced 8 million pounds of molybdenum in the quarter, up 28 percent from the year-ago period.

The price of molybdenum, which is used to harden steel, has risen steadily over the last few months, and could hit $18 a pound by the end of the year, according to commodity analysts.

Earlier this week, the Canadian government approved Thompson Creek's Mt. Milligan copper-gold project in British Columbia.

The miner acquired the project as part of its deal to buy Terrane Metals for C$650 million.

($1=$1.00 Canadian)

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