Thompson Creek shares jump after earnings beat, China data

Thu Aug 8, 2013 3:35pm EDT
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* 2nd qtr adj earnings $0.08 vs loss of $0.06 a year earlier

* Mt. Milligan project starting up within days

* Appoints new chief executive officer

By Allison Martell

Aug 8 (Reuters) - Shares of Thompson Creek Metals Co Inc rose more than 12 percent on Thursday after the miner reported better-than-expected adjusted earnings and as strong economic data out of China lifted commodities stocks.

The Denver-based molybdenum miner said late on Wednesday that its Mt. Milligan copper and gold project in British Columbia, a crucial part of its push to diversify its business by producing other metals, is set to start up in the next several days.

"The company is on the verge of a significant earnings and free cash flow ramp," said BB&T Capital Markets analyst Garrett Nelson, referring to Mt. Milligan. "I think investors that are short are all hitting the cover button in unison."

Nelson said better-than-expected costs drove the earnings beat. He also noted that smaller, more leveraged miners like Thompson Creek were benefiting more than their better-capitalized peers from the data out of China.

China's exports rose 5.1 percent in July from a year earlier, while imports jumped 10.9 percent, much more than expected. China is a major consumer of most raw materials, and its fortunes have a big impact on mining stocks.   Continued...