Thompson Creek May Suspend Production if Moly Prices Drop Further

Bloomberg reported that if the price of molybdenum falls to $9 or $9.50 per pound, Thompson Creek Metals Company Inc. (TSX:TCM,NYSE:TC) will consider suspending production at its two molybdenum mines.

As quoted in the market news:

‘We’ll continue to do our best to reduce costs and have very efficient operations,’ [CEO Jacques Perron] said. ‘But if the price goes to $9 a pound it’s going to be very difficult for us.’

Molybdenum has fallen 18 percent this year to $9.57, according to data compiled by Metal Bulletin. The metal also increases steel’s resistance to heat.

‘It’s typical of these types of operations, you put them on care and maintenance and you wait for better days and when the price goes to $13 or $14 you restart them,’ the CEO said.

Click here to read the full Bloomberg report.