Who said ‘buy and hold’ is dead? SmallCapPower.com takes a look at some Canadian companies that have rewarded patient investors that have held its shares over the past decade. Examining what has made these companies successful will hopefully help
one find the next big winning stock for their portfolio. All share price
returns represent cumulative 10-year percentage gains as of April 23, 2014.
Thompson Creek Metals Company Inc. (TSX: TCM): 2,453.8% share price increase
It might come as a surprise to find a mining company as one of Canada’s best-performing stocks during the past decade, but Thompson Creek shares rode a hot molybdenum (moly) oxide price that was often in excess of US$30 a pound from 2004 until the Great Recession hit in 2008.
It seems to have been all downhill since as the price of moly hit a decade low of less than US$10 a pound by late 2013, sending Thompson Creek Metals’ stock price sliding from its all-time high of about $25 a share to less than $2 by the end of last year.
Thompson Creek, not wanting to depend on a strong molybdenum price, purchased the Mt. Milligan copper and gold project in British Columbia with its July 2010 acquisition of Terrane Metals for US$623.5 million. As a result, the company has current long-term debt of about $900 million.
Thompson Creek’s outlook seems to be improving in 2014, though. Molybdenum prices have rebounded this year to about US$15 a pound, sending TCM’s shares back up to its current price of about $3. The company reported a 48% increase in consolidated revenue during its most recent quarter (Q1, 2014) based on an average realized moly sales price of US$10.45 a pound.
Mt. Milligan achieved commercial production in February of this year and the company expects the mine to be cash flow positive by the second half of 2014.
TCM’s share price could rise further this year if moly and gold prices continue to improve in 2014. Thompson Creek Metals has a market capitalization of about $526 million based upon 172 million shares outstanding.
Read more top performing Canadian stock articles:
http://www.smallcappower.com/posts/article-top-performing-canadian-stocks-16-5-2014
http://www.smallcappower.com/posts/article-food-franchisor-serves-up-1924-earnings-increase-may-2014
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