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.
I noticed Zurbo. I own 400 shares at a basis of $4.67 per. Production has dropped terribly from 2011 and the big stunner was the cash flow from operations for the first quarter of 2012 was $3.1 million, compared to $76.6 million for the first quarter of 2011.
I don’t see how this news about the slough at the Thompson Creek mine can be viewed as anything but devastatingly negative. I tried to find out where Phase 7 is in the pit to no avail. The topography at the mine is pretty darn brutal. The east wall rises approximately 2000 feet in a mere 1000 horizontal feet where the good stuff is. Uncertainty about safety could shut this sucker down for a long time.
Anyhow, they just didn’t give any detail about the slough elevation or size. If its a small volume near the top of the pit, maybe its no big deal. This statement sure doesn’t exude confidence…”"management believes that the event will not have a material impact on the current mine plan.”"
@forwill
More details provided in the latest news: http://www.thompsoncreekmetals.com/s/News_Releases.asp?ReportID=534847
Previous cash cost guidance of $7.75-$9.00/lb was not affirmed. That’s going to make for a very tough year profits-wise with molybdenum trading around $13/lb.
@Zurbo
Thanks for your thoughts.
@Zurbo
And Endako not going well, may yet sell them my mini-skeleton of LWC shares.
Just a heads up guys, the Dec TC 3 calls are selling for .25, while the stock is at 3.19 so very close to their intrinsic value. 9 days to expiry isn’t a whole lot of time, but they could be worth a shot if TC gets some kind of temporary pull back.
BOUGHT TC DEC 3 CALLS @ .30
Big break out coming for TC, not too late to take a position
Thompson Creek Metals had a negative operational cashflow over the last nine months and the average moly price has only gone down since then.
There’s also an active confidential treatment order, which probably means there’s an unpleasant surprise in the pipeline.
Sounds like you understand the stock market. Congratulations.