UPDATE: Deutsche Bank Downgrades Thompson Creek Metals Company As Moly Prices Fall

In a report published Thursday, Deutsche Bank analyst Jorge Beristain downgraded the rating on Thompson Creek Metals Company (NYSE: TC) from Buy to Hold, and lowered the price target from $3.75 to $1.60.In the report, Deutsche Bank noted, “The company holds a 75% interest at Endako (Sojitz Moly Resources holds remaining 25%) will place the mine on a temporary suspension effective YE14. Management states that profitability is no longer sufficient with current molybdenum pricing ($8.89/lb). This follows announcement to place namesake Thompson Creek moly mine on care and maintenance after processing stockpiled ore through the remainder of the year. We laud management for taking decisive action at Endako which comes as a surprise, in addition to recent cost-cutting moves. With continued balance sheet strain and less diversification we downgrade to Hold and cut PT to $1.60/sh.”Thompson Creek Metals Company closed on Wednesday at $1.44.