#1. This is SIGNIFICANT NEWS!!!! I believe Hanlong intends to use MOL as the primary hub if you will. I believe Hanlong will purchase assets to be funnelled through MOL. Hanlong wants 1 flagship producer, NOT tiny multiple projects. IMO they will develop MOL into one of the largest players in the moly/ironore space. Logistically, as well as financially, it makes the most sense, to amalgamate all the assets into one giant company. Mark my words MOL will be the MAJOR player in this industry going forward. The upside potential is HUGE. One more thing... If Hanlong intended to buy just any assets, the announcement wouldn't have specifically stated the monies would be spent buying assets in the same area as MOL. That's why they went after MOL first, so they could build their business around them, not to mention the fact that they were, and are, the closest of any company to production. Coincidence? I think NOT!!! The writings on the wall here.
#2. "Hanlong has said they want to use Moly Mines to become an international mining house specialising in iron ore, molybdenum and ferroalloys," said Derek Fisher, chief executive of Moly Mines. The model for the company is Fortescue, the miner created by entrepreneur Andrew Forrest in 2003, that has become one of Australia's top 50 companies since it built its own rail and port facilities to get assets out of the iron-rich Pilbara region to market. A separate, unspecified amount of money is available from Hanlong's banks to fund infrastructure investment, Fisher said. "Infrastructure is part of the equation and Moly Mines and Hanlong are currently in discussion on that," he said.
So my question is if Hanlong buys iron ore assets, will they use MOL to hold those assets (ie. give MOL a loan to buy those assets), or will they hold them under Hanlong?
Evision comment (me)... Do you see what is going on here? I think some people have under estimated... A LOT! The new port access is kind of handy too... don't ya think!
E.
MOL Price at posting:
84.0¢ Sentiment: ST Buy Disclosure: Held
