May 3, 2012 / 10:14 PM / 6 years ago

UPDATE 1-Thompson Creek Metals profit plunges on costs

* Expects to meet 2012 production view

May 3 (Reuters) - Spiraling development and operational costs nearly wiped off Thompson Creek Metals Co Inc’s first-quarter profit.

The molybdenum miner reported net income of $1.1 million, or 1 cent a share, in the quarter ended March 31. That compared with a profit of $128.9 million, or 73 cents a share, in the year-ago quarter.

Net income for the first quarter of 2011 had included a gain on common stock purchase warrants of $66 million, or 37 cents per share.

Revenue fell 45 percent to $113.6 million.

Operating costs for the quarter rose 5 percent to $102.4 million.

Thompson Creek warned last month that it expected to post a loss on mill start-up and commissioning costs at its Endako mine in British Columbia.

The company expects to meet its total production guidance for this year of about 26 to 28 million pounds of molybdenum, it said in a statement.

The Denver-based, Toronto-listed miner’s shares, which are down 22 percent so far this year, closed at C$5.64 on Thursday on the Toronto Stock Exchange.

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