May 6, 2011 / 10:04 PM / in 7 years

UPDATE 1-Thompson Creek Q1 profit tops on higher molybdenum prices

* Q1 adj EPS $0.36 vs est $0.28

* Q1 rev rises 62 pct to $206.7 mln

* Cuts 2011 production view to 28-32 mln pounds

* Raises 2011 capital budget to $680 mln from $591 mln (Follows alerts)

May 6 (Reuters) - Thompson Creek Metals reported a higher quarterly profit above market expectations helped by higher molybdenum prices and a rise in production.

The molybdenum miner, however, cut its annual production outlook to 28-32 million pounds, from its prior outlook of 30-33 million pounds. It raised its 2011 capital budget to $680 million from $591 million.

“We anticipate that over the remainder of 2011, the price for molybdenum oxide will continue to be volatile, but will gradually increase with the expected improvement in worldwide molybdenum bearing steel production,” Chief Executive Kevin Loughrey said.

The price of molybdenum, 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.

Toronto-based Thompson Creek’s earnings soared to $128.9 million, or 78 cents a share, from $1.1 million, or 1 cent a share, a year ago.

Excluding items, the company earned 36 cents a share, compared with analysts estimates of 28 cents a share, according to Thomson Reuters I/B/E/S.

Revenue of the company, which has operations in Idaho, Pennsylvania and British Columbia, rose 62 percent to $206.7 million.

Earlier this week, the Canadian government approved Thompson Creek’s Mt Milligan copper-gold project in British Columbia, which is expected to start production in 2013.

The company’s shares closed at C$10.87 on Friday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Don Sebastian)

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