UPDATE 1-Thompson Creek Metals Q4 profit tops estimates

Thu Feb 25, 2010 6:32pm EST

Related Topics

* Q4 EPS $0.14 vs. est $0.07

* Q4 rev $106.2 mln vs est $100.5 mln

* Backs FY molybdenum production view of 29-32 mln pounds

Feb 25 (Reuters) - Canadian pure molybdenum producer Thompson Creek Metals Co Inc (TCM.TO) reported better-than-expected quarterly profit on a gain on an accounting change and a 19 percent fall in costs.

"The medium-term outlook for molybdenum prices remains favorable, especially as the world industrial economy returns to a more normal growth rate and that growth stimulates additional demand for molybdenum," Chief Executive Officer Kevin Loughrey said in a statement.

The company reaffirmed 2010 molybdenum production outlook at 29 million to 32 million pounds on a capital expenditures of $298 million.

For the quarter ended Dec 31, the company reported net income of $26 million or 18 cents per share, compared with a net loss of $23.8 million or 19 cents per diluted share last year.

Excluding a $5.6 million gain over change in accounting treatment of warrants, profit was 14 cents per share. Analysts on average were expecting a profit of 7 cents a share, according to Thomson Reuters I/B/E/S.

Revenues dropped 42 percent to $106.2 million on a 43 percent drop in the average realized price for molybdenum products to $12.37 per pound.

Quarterly molybdenum production declined 19 percent to 6.3 million pounds in the fourth quarter

Shares of the company closed at C$14.11 Thursday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Savio D'Souza)

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