Monday, November 8, 2010

Thompson Creek (NYSE:TC) Should Generate Higher Unit Prices

After their recent earnings report, Thompson Creek Metals (NYSE:TC) has shown that while its unit prices should rise through 2012, they will experience lower volumes during that time.

Consequently, Canaccord Genuity maintained a "Hold" rating on them, although they raised their price target on the mining company.

Canaccord said, "Thompson Creek reported Q3/10 financial results on November 4. Adjusted diluted EPS of US$0.32 was above our forecast of US$0.19 and the 14-analyst Bloomberg consensus of US$0.20, with a low income tax rate the primary difference to our forecasts. Operating results were in line. TCM provided 2011 and 2012 operating guidance, confirming expectations of lower volumes and higher unit prices into 2012.

"Our new 2011E and 2012E EBITDA forecasts are US$226 million and US$143 million, down from US$242 million and US$148 million. Our new 2011 and 2012 adjusted EPS forecasts are US$0.60 and US$0.23."

Thompson was trading at $13.38 in New York, gaining $0.26, or 1.98 percent as of 12:41 PM EDT. Canaccord increased their price target on them from C$10.30 to C$12.00.

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