Thompson Creek Metals has reported a higher quarterly profit above market expectations helped by higher molybdenum prices and a rise in production.

The molybdenum miner, however, cut its annual production outlook to 28 to 32 million pounds, from its prior outlook of 30 to 33 million pounds. It raised its 2011 capital budget to USD 680 million from USD 591 million.

Mr Kevin Loughrey CEO of Thompson Creek Metals said that "We anticipate that over the remainder of 2011, the price for molybdenum oxide will continue to be volatile, but will gradually increase with the expected improvement in worldwide molybdenum bearing steel production."

The price of molybdenum, used to harden steel, has risen steadily over the last few months, and could hit USD 18 a pound by the end of the year.

Toronto based Thompson Creek's earnings soared to USD 128.9 million from USD 1.1 million a year ago. Excluding items, the company earned 36 cents a share as compared with analysts estimates of 28 cents a share.

Revenue of the company, which has operations in Idaho, Pennsylvania and British Columbia, rose 62% to UAS 206.7 million. Earlier this week, the Canadian government approved Thompson Creek's Mt Milligan copper gold project in British Columbia, which is expected to start production in 2013.

(Sourced from www.ruters.com)