Thompson Creek Metals Company…today reported that on May 15, 2012, a wall slough occurred in the Phase 7 mining area of the Thompson Creek mine. The Company believes the slough resulted from water pressure behind the wall due to seasonal run-off. There were no injuries or equipment damage and management believes that the event will not have a material impact on the current mine plan. Management will continue to evaluate the potential impacts, if any, to the Company’s 2012 production and cost guidance for the mine.
Did anyone else notice Thompson Creek Metals decline from almost $10 per share in February 2012 to today’s close of $3.66? The company is now being valued at less than the acquisition price of Terrane Metals, bought way back in 2010 for its Mt. Milligan copper-gold project. Nevermind the hundreds of millions spent on Mt. Milligan since the acquisition. The trouble now is that approximately $800-$900+ million remains to be spent on the project, and after two disappointing quarters (Q4 2011 and Q1 2012) there are probably plenty of people worried about funding stresses.
Note: The recent conference call confirmed that roughly $400 million in senior notes and tangible equity units funding had closed, which should be enough to take them through production at Mt. Milligan.
2 years ago
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