22/04/2010 16:40 Two interesting Moly values: Moly Mines and Moly West Victory Dear Readers,
the raw material of molybdenum and its current prospects, I had presented to you in this week already. Today, now followed by two Moly shares, which are located in very different stages of development. During Moly Mines shortly before production is Chinese and has a new major shareholder, is Victoria West Moly at a very early stage and the active search for a large investor.
Moly Mines with new major shareholder
Coming events cast their shadows in Moly Mines. From the end of April, the Chinese Mining Investment Hanlong a major shareholder in the Australian company. This is a crucial step on the path that Spinifex Ridge molybdenum project promising too quickly to bring into production.
The project is located in the Pilbara region of Western Australia. All for the start of production necessary permits are now available too. According to various studies, the Spinifex Ridge project, the potential for an annual capacity of 20 million tonnes with further expansion possibilities.
In the wake of the financial crisis and the fall in prices for molybdenum led to delays in the development of the project. But since the fall of 2009 it is again clear up. Sun Moly Mines has Hanlong Mining Investment to win a major strategic investor. First, there is an investment of $ 200 million available for several days now since all the necessary approvals from the Chinese government. In order that both parties have fulfilled all the requirements to seal the strategic partnership. Derek Fisher, CEO of Moly Mines said: "The stage is now set for the strategic entry of Hanlong, it can be concluded that the development of the first global Molybdngromine for 25 years."
Victoria West Moly seeks partner
After the considerable Burglary in steel demand in the past year is this year expected to return with a strong recovery and this trend will continue according to current forecasts in the coming years. So it is quite possible that there is a supply deficit of 2014 for molybdenum.
Victoria West Moly has promising projects mainly in Asia and very well in Indonesia. In the B anomaly is currently still a huge potential. There was already there though historical drilling and also the identification of other new exploration targets, which are about four times as large as the existing potential. The extension of the anomaly B succeeded on the basis of a new geological model. It also had the new management team of great influence, with the new CEO Robert Hynde and the technical director Brett McKay.
This year should be started the drilling program at the B anomaly. This should serve to underpin the new geological model and also have to increase the resource. In addition to the still Promistis area be developed as a new molybdenum.
A lot of movement in the Moly-sector
According to the management there will be greater this year marketing activities of Victoria West Moly. "Until now, the market knows our history and the great potential yet," says Victoria CEO Robert Hynde.
Throughout the molybdenum sector in recent months, the acquisition activity has increased significantly. There were acquisitions by larger players such as Thompson Creek. In addition, there have been numerous new joint ventures and other collaborations primarily from Asian customers. Here came the most partners from China and South Korea.
Finally, a note: As both companies are not yet in production, here the risk is significantly higher than for large companies such as BHP Billiton commodity or a pure moly producers such as Thomson Creek. These small stocks are really just something for blending in the depot.
Until tomorrow, Heiko Bohmer Editor in Chief "Private Finance Letter
