Australian (ASX) Stock Market Forum

MOL - Moly Mines

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noco said:
IMHO, Moly Mines is in for an exciting year ahead.
Click to expand...

With the I/O operation they state an OPEX of $46/t to the ship via road transport and contracted mining. Contract labour and road transport is very expensive but $46 is the number they state. :cool:

However the Mo project portrays another serious establishment in the Pilbara region in its infancy. The Chinese move indicates a certain future demand for Mo/Cu with such a sizable project to be undertaken.
 
This taken from thier quarterly

...............

Quarter Highlights

Hanlong Mining Investment

● Hanlong to acquire majority control of MOL through US$200 million equity/debt investment

Hanlong to procure US$500 million project finance loan facility by 30 June 2010 for Spinifex Ridge Molybdenum Project.

● FIRB and Moly Mines shareholder approval received.

● PRC National Development and Reform Commission and Ministry of Commerce approvals received.

● PRC State Administration of Foreign Exchange approval is in progress.

● Negotiations ongoing to extend the 31 January cut‐off date for the satisfaction of remaining SAFE condition precedent.

...............

Ann on the first of Feb

...............

As advised in previous announcements by Moly Mines Limited (ASX/TSX:
MOL), the State Administration of Foreign Exchange (SAFE) approval for Hanlong Mining Investment Pty Ltd’s (Hanlong) investment in Moly Mines has been delayed.

SAFE approval is the final of the three People’s Republic of China approvalsrequired by Hanlong to complete the Hanlong Subscription Agreement.

Hanlong and Moly Mines are attempting to resolve likely timing for this approval process and finalize an extension to the conditions precedent deadline within the Subscription Agreement. Moly Mines will advise the market when a revised date has been determined.

.................

Now this from David Sullivan in 2004

.................

(The CEO of Trade Finance Corporation Ltd in Hong Kong. Taken from: http://www.tfreview.com/xq/asp/sid...._from_Hong_Kong_David_Sullivan/qx/display.htm).

A Chinese company needs Safe approval if it borrows foreign currency from a foreign bank (inside and outside of China) or if it receives funds from a company offshore. An exception used to be a “pre payment” as opposed to a loan, but in view of abuses, regulations are now being tightened.

For every request for Safe approval there is currently a less than 50% chance of approval. For amounts below $30m approval stays within the province. Safe registration as opposed to approval can be done at city level. All Safe offices are given a quota for each year with emphasis on certain industries each year. Safe will not approve a transaction for an entity whose financials are showing losses. Often it is the legal person’s connections with his provincial Safe that is the key.

...................

After doing some research, China has addmitedly significantly reajusted SAFE regulations. These adjustments are sumarized in Benedict Tai and Jessie Tang's article found on the Mondaq website:

'In conclusion, Chinese government has changed its long-term stringent foreign currency control policy to facilitate overseas expansions by Chinese companies. Following such policy change, outbound merger and acquisition activities by Chinese companies are likely to increase exponentially.'
(http://www.mondaq.com/article.asp?articleid=84736).



My concern however remains why the 'delay'?
 
Does anyone know if the Hanlong deal goes through, will the share float increase another 200 million shares?
 
Great news coming out for Moly Mines today. We are looking down the barrel of a new working mine.

  • Major contracts in place for camp facilities, mining, crushing, and haulage.
  • Utah Port in operation.
  • First shippment scheduled for December looks promising.
  • Just waiting on Hanlong (majority shareholder) to finalise financing.

Iron ore in just the tip of this iceberg and will pay for the start up costs, but it's all about the Molybdenum for this company.
 
The time has come, Moly Mines is up and running.

Announcement today.

Moly Mines Limited (ASX/TSX: MOL) is pleased to announce that it has commenced iron ore production at Spinifex Ridge, 50km northeast of Marble Bar in the Pilbara of Western Australia.

Commissioning of the crushing and screening processing plant has been successfully completed and commercial production is now underway (refer photo attached). The plant is operating on one shift per day and ramping-up to the designed through-put rate of 3,000 tonnes per day, equivalent to 1 million tonnes per annum.

Trucking of iron ore product into Port Hedland has also commenced with approximately 5,000 tonnes of material already transported into the Utah Point port facility.
 
I think MOL is looking pretty good now with production ramping up shortly... once some cash starts rolling the share price will too.. this is now a producer... this is a real milestone and is what will make a big difference if there is another WFC between the companies that survive and the companies which are just wiped away..
Taking postion at $1.10 ...
 
adobee said:
I think MOL is looking pretty good now with production ramping up shortly... once some cash starts rolling the share price will too.. this is now a producer... this is a real milestone and is what will make a big difference if there is another WFC between the companies that survive and the companies which are just wiped away..
Taking postion at $1.10 ...
Click to expand...

I would have to agree, and as in your last post, $7! I jumped in last week when it fell back under $1, should be a good ride :) now, only a matter of time...
 
Moly's first shipment left last night, sold to Hanlong Metals. Lovely little jump in price today closing 12c higher. Now they can start to pay down their start up debt and look foward to a good 2011 for this company.

Very nice way to end the year.
 
2011 is looking very promising.. and off to a fantastic start...
I think this will get a substantial re-rating as more cashflow comes through and appears on the balance sheets..
 
adobee said:
2011 is looking very promising.. and off to a fantastic start...
I think this will get a substantial re-rating as more cashflow comes through and appears on the balance sheets..
Click to expand...
Mothballed the Molybdenum project, around break even with the iron ore business, iron ore prices trending down. Share price reflecting bitter disappointment now. :cool:
 

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