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Molex Share Discussion Threads
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|Moly Mines presentation from last night's Proactive Investors Event: http://www.proactiveinvestors.co.uk/archives/documents|
|The directors of European Nickel (AIM: ENK), Orko Silver (TSX-V: OK) and Moly Mines (TSX / ASX: MOL) will be presenting at the Proactive Investors One2One Forum on Thursday the 27th January 2011 at the Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB.
The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.
REGISTER YOUR ATTENDANCE HERE: http://www.proactiveinvestors.co.uk/register/event_details/99|
|Share price in the ASX is $3.03 ( 4th July 08)
The price over the past year has been as high as $7.25.
Its proximity to roads and the North coat port means shipping to China should be relatively inexpensive.
Washes its face at $7.00 a discount of $26 to MOLY price.
My view is that Moly will approach $40 within 6 months of now.
See also: ROK ( Canadian V share Roca Mining ).|
|Molymines in NE Australia:
Molybdenum Is The Metal Proxy For Exposure To Oil And Gas, And Moly Mines Has Plenty At Spinifex Ridge
By Our Man in Oz
Sour gas has a sweet smell for Derek Fisher. Over the past three years, as he has been busy building a new Australian business based on mining the metal molybdenum, global demand for oil and gas, whether sweet or sour, has soared. The link between "moly" and sulphur rich (sour) oil and gas is that pipes carrying the fuel must be moly-toughened. That's why a commodity which most people struggle to pronounce, let alone understand, is now technically rated as the world's newest precious metal, with a price which has risen from US$5 a pound five years ago to around US$30 a pound, or close to US$2 an ounce, today. At that level a level which seems likely to stick, given the global stampede to produce even the foulest of oil and gas molybdenum starts to look a very good bet indeed, and the Spinifex Ridge project owned by Mr Fisher's Moly Mines could emerge as a big winner in the next wave of the mining boom.
While investors in North America and Europe have been licking deep wounds caused by failed bank and retail investments anyone exposed to resources, especially oil and gas, has survived and, in most cases, prospered. The question now is what next, and one of the answers lies in finding metals which will benefit from the worldwide hunt for liquid fuels, even the stuff produced by boiling down tar sands in Canada, or from the high sulphur oils in the Middle East.
"Moly really is a metal for our times", Fisher told Minesite during a flying visit to his office in Perth. "It has unique properties, including a very high melting point, which make it essential in speciality steels which account for 70 per cent of its use." There are other attributes which Fisher rattles off as a good chief executive should. Corrosion resistance, easy to weld, hardness, no economic substitute... not to mention that no-one has developed a new moly mine for more than 20 years, and that supply has instead been reliant on moly produced as a by-product of copper production, especially from Chile.
Change is afoot. Several big miners are planning to expand production from existing pits, though a lack of exploration dating back to the 1970s means that very few moly deposits are in the undeveloped category they simply haven't been found. Spinifex Ridge is different. Dozens of Australian geologists have prowled across the deposit since Anglo American first drilled it in 1969, looking for copper. Other owners came and went. Exxon, when it had a minerals division, had a squiz, as did Newmont. The problem was always the low price of moly, the remote location and a lack of infrastructure to support a mine. Spinifex Ridge remains remote, close to Australia's hottest town, Marble Bar but a gas pipeline now passes nearby, and road and rail services have improved dramatically following the re-birth of the iron ore industry.
"Our confidence in the project has increased enormously as we work through the numbers," Fisher said. "We now have the world's most advanced, large-scale molybdenum project. We can easily see a 30 year mine life, producing 20 million tonnes of ore a year for 24 million pounds of moly and 27.3 million pounds of copper." Final numbers are being worked out, but the capital development cost of a mine of that size will be around A$1.1 billion. The result will be a project producing moly with copper credits at around US$7 a pound, less than half the long-term assumed moly price of US$15 per pound, and close to a quarter the current market price.
Over the past six months, as assorted feasibility, marketing and financing studies have fallen into place the speed of development has picked up. A critical step was taken last week when an all-important off-take agreement was signed with Germany's ThyssenKrupp group, covering all production from Spinifex Ridge over the first 10 years of mine life. "This is a critical step in our project financing", Fisher said. "The moly price in the off-take will be determined with reference to the prevailing market price, ensuring that we maintain full exposure to the molybdenum price."
Gas and power supply contracts have yet to be signed, while final government environmental approvals are expected by the end of the month. These details follow the awarding of a mining contract, and appointment of an engineering firm to oversee construction of the project. It's a simple mine, grind and flotation process, which produces a concentrate that's then trucked out and shipped to Chile for specialist moly processing. Fisher said financing negotiations, based on a structure of two-thirds debt and one-third equity, are targeted for completion in the September quarter.
On the stock market, investors have maintained a high level of interest in Moly Mines. Over the past three weeks, while many other companies have been hit by selling, Moly has managed a modest rise from a low of A$2.91 in mid-June to recent trades at around A$3.09. That modest upward move underlines the point about the curious status of molybdenum as a "metal proxy" for exposure to the oil and gas sector, especially in the area of difficult oil which is much of what the world will be producing over the next few decades.
A final word on Moly Mines is for readers who believe in omens, a measuring device which, to the best knowledge of Minesite's Man in Oz, is not covered by the code of the Joint Ore Reserves Committee. That warning given, it is worth sharing with Minesite's wandering Aussie scribbler the acute sense of déjà vu that he experienced as he arrived at Fisher's office for this week's chat. He had definitely been in exactly the same place, on the same floor, of the same building several years earlier. Then the penny dropped. This was the old office of Andrew Forrest when Fortescue Metals Group was an embryonic concept. Other parallels quickly made themselves apparent. Forrest helped Moly get going. A Fortescue executive, Peter Thomas, is a director of Moly, and the biggest shareholder in Moly, with a 19.9 per cent stake, is the U.S.-based Harbinger Capital, which also just happens to have a 16.6 per cent stake in Fortescue. Lightning striking twice in the same place? Perhaps though not in the JORC code.|
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