Thompson Creek drops 2007 moly output forecast (January 07, 2008)

Vancouver — Thompson Creek Metals Co. (TCM-T, TC-N) says molybdenum production for the year will come in as much as 12% below forecast levels, citing a recent rockslide at its 75%-owned Endako mine, in central B.C., that interrupted production.

The company now expects to deliver total molybdenum production of about 15.9 million lbs. for 2007, compared with previous estimates of 17.5-18 million lbs.

Although the Endako mill has continued to operate, processing ore from the Denak West pit and stockpiles, it is not running at full capacity due to higher moisture content in the new feed, along with lower average grades. The November slide also damaged one of the large shovels in the Endako pit with completion of repairs expected by year-end.

Thompson Creek (formerly Blue Pearl Mining) is partnered with Japanese company Sojitz, which holds 25% of the Endako mine and roaster complex.

Forecast molybdenum output from Endako in 2008 remains unchanged at 10-11 million lbs.

Fourth-quarter production from the Thompson Creek open-pit mine in Idaho also fell short of forecast. Access to higher-grade sections of the orebody has been delayed during the transition from mining stockpiles. The operation is expected to produce about 9.1 million lbs. molybdenum, compared with a previously estimated 10-10.3 million lbs.

The company forecasts total 2009 production of more than 34 million lbs. as it expects to have reached the higher-grade portions of the Thompson Creek orebody by then.

Thompson Creek also owns a metallurgical roasting facility in Pennsylvania and is developing the Davidson high-grade underground molybdenum project, near Smithers, B.C.

Shares of the pure molybdenum company have slumped 15-20% on the forecast production shortfall, recently trading at around $17. The stock has a 52-week trading range of $7.11-25.58.