You take cornerstone investor's in your company as a positive sign that you have an exciting prospect. Like a vote of confidence. Often, it becomes a negative. It is virtually a bail out of a company low on cash, high on risk and ripe for a predator. No one will go near MOL with Hanlong on the books. Hanlong provide the finance but they also carry the risk in dealing with a speculative metal like Molybdenum. All molybdenum explorers/producers are struggling. Mining the stuff at US$14/lb is virtually done at cost price. Mol holders are not alone its across the board. With BHP coming out today and saying Chinese steel output will not be rising in the near future only further diminishes the outlook for molybdenum. And to a lesser extent iron ore.
MOL Price at posting:
37.0¢ Sentiment: None Disclosure: Not Held
