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NEW YORK (Scrap Monster): United States molybdenum producer Thompson Creek Metals may not have enough cash to complete its Mount Milligan copper and gold mine, which is under construction in British Columbia, said US investment bank Dahlman Rose in a research note.

According to the bank, with molybdenum prices below $12/lb, "we do not think that Thompson Creek will have enough cash to complete its Mt. Milligan development project, unless the company is able to finish the project at the lower end of its [cost] expectation."

The recent history of mining there have been few examples of projects completed at the lower end of cost expectations.

A spokesman for Thompson Creek said the company was unable to make any comment ahead of its second-quarter results, which are due Wednesday.

The bank noted that, "given our belief that molybdenum prices will not recover over the next 24-36 months, we believe that it may be necessary for management to raise additional capital in order to have adequate cash to fund operations and complete the expansion of this crucial project."

Thompson Creek could run out of money in the first half of 2013, given its current cash-burn rate, which the bank did not detail, "as the company will have a significant build in working capital as it looks to ramp up the Mt. Milligan asset," they added.