Friday, February 08, 2008

Thompson Creek Metals Company a Buy

I've been looking to jump into a gold mining company of late because I don't feel the party is over quite. However during my research, I found Thompson Creek Metals Company, Inc. Thompson Creek is the second-largest publicly traded producer of molybdenum, which increases the corrosion resistance of stainless steel in industrial processes and keeps oil and natural-gas pipelines from fracturing in super cold temperatures. It is also used in catalysts that lower the sulfur levels of fuel.

Australia's Macquarie Research projects molybdenum prices will climb about $2 a pound, or 6.5%, in 2008. and Thompson Creek is lowering costs. In 2006, the company spent about $6 to produce a pound of molybdenum. It cost them more than $7 in 2005.

The stock currently trades around $15, way off of both it's 52 week high and low.