Why Thompson Creek Metals(TC) Stock Is Gaining Today

NEW YORK (TheStreet) -- Thompson Creek Metals (TC) was gaining 7.4% to $2.63 Thursday after announcing its first-quarter operating results.

The company announced that total concentrateproduction for the Mt. Milligan mine was 22.2 thousand dry metric tons in the quarter. The concentrate contained 14.2 million pounds of payable copper and 39.2 thousand ounces of payable gold. Molybdenum production for the quarter was 7.9 million pounds.

The Thompson Creek mine molybdenum productions was better than expected thanks to higher ore grades and mill recoveries. Molybdenum production at the Endako mine was lower than expected, however.

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TheStreet Ratings team rates THOMPSON CREEK METALS CO INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate THOMPSON CREEK METALS CO INC (TC) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TC has underperformed the S&P 500 Index, declining 16.79% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 56.5% when compared to the same quarter one year prior, rising from -$484.40 million to -$210.50 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, THOMPSON CREEK METALS CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • TC's debt-to-equity ratio of 0.92 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that TC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.63 is high and demonstrates strong liquidity.
  • THOMPSON CREEK METALS CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, THOMPSON CREEK METALS CO INC continued to lose money by earning -$1.28 versus -$3.24 in the prior year.
  • You can view the full analysis from the report here: TC Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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