Deutsche Bank Downgrades Thompson Creek Metals To Hold As Balance Sheet Continues To Strain

In a research report issued today, Deutsche Bank analyst Jorge Beristain downgraded Thompson Creek Metals (NYSE:TC) to Hold rating, and reduced his price target to $1.60, which still implies an upside of 13.5% from current levels.

Beristain commented, “The company holds a 75% interest at Endako (Sojitz Moly Resources holds remaining 25%) will place the mine on a temporary suspension effective YE14. Management states that profitability is no longer sufficient with current molybdenum pricing ($8.89/lb). This follows announcement to place namesake Thompson Creek moly mine on care and maintenance after processing stockpiled ore through the remainder of the year.”

The analyst continued, “We laud management for taking decisive action at Endako which comes as a surprise, in addition to recent cost-cutting moves. With continued balance sheet strain and less diversification we downgrade to Hold and cut PT.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jorge Beristain has a total average return of -11.1% and a 28.3% success rate. Beristain has a -14.3% average return when recommending TC, and is ranked #3300 out of 3403 analysts.

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