award of contract(s)

Now that Moly Mines has all but secured the project finance loan, which contract miner(s) will get the job to develop and mine both the molybdenum and iron ore at Spinifex Ridge?

In February 2008 Macmahon were awarded a $1.1 billion contract based on a 20 Mt/a molybdenum operation and due to GFC Moly was unable to procure the finance which was required to advance the project.

It would be interesting to know the finer details of the original $1.1 billion contract and whether the contract still stands albeit reduced scope and contract dollar value.

Anyhow, I would believe that the revised contract(s) could only be awarded to one of the following:

1. Macmahon
2. Leighton
3. Downer EDI
4. NRW Holdings

I anticipate that the award of these contracts will be made within the next 2 months given that the projects are just about ready to develop.

In my opinion the spot price for molybdenum will steadily increase and is currently lagging other metals.

I believe that Moly is a great long term play so if you have the patience I believe you will be rewarded.

I believe someone (Lion2009) said that at a molybdenum price of $USD17.50/lb would see Moly Mines break even. I too would like to know where this information has been obtained from.

According to a Presentation released by Moly to the ASX on 3 September 2009 (page 19) at Low Case "current spot" which at the time was approximately $16/lb, EBITDA would be $149 million.

That's a huge difference to Lion2009's break-even forecast at $17.50/lb and Moly's forecast. Don't know where he/she got that info from?

I'd like to believe what the company has stated after all the company has been assessing this project for years. I think they should know.

DYOR

;)
Nic