Thompson Creek Metals Company Inc., the molybdenum miner branching into copper and gold with its new Mt. Milligan project, said prices for the steel-strengthening metal will rise in the first quarter of next year.
The first-quarter price for molybdenum oxide, a commonly traded form of the metal, will be $10 to $10.50 a pound, said Jacques Perron, chief executive officer of the Littleton, Colorado-based company, in a phone interview.
“We’re seeing improvements in Europe and I think that’s going to be very important for molybdenum going forward,” Chief Commercial Officer Mark Wilson said. Demand “could well actually outpace supply growth, at least in the first couple of quarters in 2014.”
Molybdenum has fallen 15 percent this year to $9.85 a pound, according to data compiled by Metal Bulletin. The metal is used to strengthen steel and increase its resistance to heat.
A weak European economy cut demand and led to the year’s price drop, Wilson said. Stronger automobile exports from Japan and the U.S. have helped taper the price drop, Wilson said.
Thompson Creek rose 1.2 percent to C$3.27 in Toronto.
The company yesterday reported third-quarter net income of 6 cents a share, compared with a loss of 29 cents a year earlier. Excluding one-time items, it posted a loss of 4 cents, missing the 2-cent average of 12 analysts’ estimates compiled by Bloomberg.
Perron joined Thompson Creek last month after former CEO Kevin Loughrey retired.