November 4, 2010 / 10:28 PM / in 7 years

UPDATE 1-Thompson Creek posts profit on strong moly prices

* Q3 profit $0.22/share vs loss $0.01/share

* Revenue up 41 percent to $161.8 million

* Moly production up 28 percent to 8 million pounds (In U.S. dollars unless noted)

TORONTO, Nov 4 (Reuters) - Thompson Creek Metals TCM.TO said on Thursday it returned to profit in the third quarter thanks to a 28 percent rise in production and higher molybdenum prices.

Toronto-based Thompson Creek reported earnings of $31.1 million, or 22 cents a share, compared with a year-ago loss of $1.4 million, or 1 cent a share.

Excluding an unrealized loss on warrants, the company earned $51.6 million, or 36 cents a share, up from a year ago profit of $14.3 million, or 11 cents a share.

Analysts, on average, had forecast earnings of 20 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 41 percent to $161.8 million from $111.8 million a year earlier.

Thompson Creek said it produced 8 million pounds of molybdenum in the quarter, up 28 percent from the year-ago period.

The price of molybdenum, which is 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.

Earlier this week, the Canadian government approved Thompson Creek’s Mt. Milligan copper-gold project in British Columbia.

The miner acquired the project as part of its deal to buy Terrane Metals for C$650 million.

$1=$1.00 Canadian Reporting by Julie Gordon; editing by Rob Wilson

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