Here's Why This Stock Is a Core Holding in My Portfoliohttp://www.fool.com/investing/general/2012/02/29/heres-why-this-stock-is-a-core-holding-in-my-portf.aspx Sean Williams
February 29, 2012
There are stocks that occasionally move in and out of my portfolio every few months -- and then there are my core holdings. Without question, Thompson Creek Metals (NYSE: TC ) has cemented itself as a core holding based on its continued outperformance.
Thompson Creek last night reported its fourth-quarter and year-end results and provided investors with production guidance for 2012 and beyond.
For the quarter, Thompson Creek broke even on EPS, still beating analysts' expectations of a $0.07 loss, and reported revenue of $116.7 million, down from $156.8 million in the year-ago period. But as with most mining companies, Wall Street isn't too concerned with the present so much as it is with the future.
Thompson Creek hit all the right notes (at least with me) with regard to its production guidance. To list a few of the numerous optimistic points:
Of course, the thorn in the side of all mining companies is rapidly rising costs. Higher expenses have been hitting all miners without discrimination, including Kinross Gold (NYSE: KGC ) , which recently curtailed its plans to build out the Tasiast Mine in Mauritania for up to nine months. In Ghana, Gold Fields (NYSE: GFI ) may pass on further mine development if the corporate tax on mining rises to 35% from 25% and, on top of this, the government introduces a 10% windfall tax. Even Jaguar Mining (NYSE: JAG ) is having issues getting its Gurupi project off the ground because it just doesn't have the proper capital.
Have no fear, Thompson Creek shareholders -- management has you covered. The company agreed with Royal Gold (Nasdaq: RGLD ) to turn over a 40% stake in the gold production of the Mount Milligan mine in exchange for $270 million. Not a bad deal considering that capital expenditures in 2012 are expected to be in the range of $868 million to