TORONTO (Reuters) - Shares of Thompson Creek Metals TCM.TO sank nearly 6 percent on Friday after the molybdenum miner reported a smaller-than-expected second-quarter profit.
Thompson Creek, the world’s No. 5 producer of the steel-hardening agent, earned $60.4 million, or 45 cents a share, in the quarter, up from $56.8 million, or 45 cents a share, in the year-before quarter.
The result missed consensus estimates of 52 cents a share, according to Desjardins Securities analyst John Redstone.
“Earnings were negatively impacted by a build-up in inventory of roughly 1 million pounds (455,000 kg) in anticipation of a maintenance shutdown of the company’s roaster facilities in (the third quarter),” he said in a note.
At mid-morning, the company’s shares were down 89 Canadian cents at C$14.75 on the Toronto Stock Exchange.
Molybdenum output rose 38 percent to 6.2 million pounds, while realized prices for the metal rose 10.4 percent to $32.68. Production costs per pound climbed to $7.49 from
The company said it was on track to meet its 2008 production expectations of between 23 million and 24.5 million pounds of molybdenum and more than 34 million pounds next year.
Reporting by Cameron French; Editing by Peter Galloway