Dow Jones reported that mining company Thompson Creek Metals Co Inc has reported a rise in quarterly operating profit due to higher molybdenum prices and sales, and said prices of the strategic metal, used in the steel making process, are likely to continue to increase in 2011.

The Toronto listed miner, one of the world's largest molybdenum producers, said that fourth quarter earnings rose to USD 34.4 million or 20 cents a share, excluding one time items.

Stripping out a USD 79.4 million non cash charge on common share purchase warrants, Thompson Creek's earnings for the quarter were up from a profit of USD 20.4 million or 14 cents a share, a year earlier. On a net basis, the miner posted a loss of USD 45 million or USD 0.28 cents a share.

Quarterly revenue rose by 48% to USD 156.8 million due to increased sales volumes and a 30% higher average molybdenum price of USD 16.05 a pound, up from USD 12.37 per pound a year earlier.

Mr Kevin Loughrey CEO of Thompson Creek said that "We anticipate that over the balance 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."

Molybdenum production during the fourth quarter rose to 9.3 million pounds, up by 48% YoY from 6.3 million pounds a year earlier, due to a significantly higher grade of ore from the Thompson Creek mine in Idaho.

This higher grade ore also resulted in a lower average cash cost per pound produced, with Thompson Creek's outlay decreasing to USD 5.81 per pound from USD 6.61 per pound a year earlier.

Thompson Creek raised its guidance for 2011 capital expenditure by USD 66 million to USD 591 million, with USD 181 million now being earmarked for the company's 75% share of a mill expansion project at the Endako mine.

This CAPEX increase comprises a higher sum of USD 39 million for the cost of expanding a facility in British Columbia, and USD 27 million of carryover from 2010.

(Sourced from www.dowjones.com)