MOL - Moly Mines

[Nuke]

Also,

If u like the future of molybdenum check out PRZ. Currently in the process of acquiring an advanced project that rivals Spinifex Ridge in size

 

[YOUNG_TRADER]

hey YT,

moly spot price is US$33.75/lb. MOL used $13 prices in NPV calcualtions

http://www.infomine.com/investment/historicalcharts/showcharts.asp?c=Molybdenum

wow the Moly price is almost 3x their NPV calcs, I suppose to err on the side of caution these groups use long term conservative prices which is fair enough I guess, I mean if the project was financially viable at $13/lb then it must be bonaza at $34/lb!

If they can get into production ASAP will reap bonaza cash flows

 

[YOUNG_TRADER]

Hey Nuke thanks for the link,

Looks like theres lots of spec metal prices at that site, thanks I'll keep it for my future research/reference

Anyhoo heres a 10year Moly Chart

 

[Nuke]

hey YT,

infomine.com is the best and biggest mining datatbase. im not a subscriber but will be very soon. the info they provide is well worth the subscription fee. also, edumine provides online courses on a variety of minining related topics which are very useful

nuke

 

[AussiePaul72]

If anyone is interested in emerging moly companies, another to keep an eye on is Millenium (MOY). They renamed the company (originally Wedgetail WTE) upon finding a significant molybdenum anomoly which they have termed the Millenium resource. It is in the same region as Moly Mines Spinefex Ridge resource and early signs are that it could be potentially a larger moly resource. Not a great deal of interest in MOY at present but is well and truly on my watch list. Not sure there is a MOY thread but there was a WTE thread started if anyone wants some info
Sorry ...... back to MOL!

 

[Birdster]

...

infomine.com is the best and biggest mining datatbase. im not a subscriber but will be very soon. the info they provide is well worth the subscription fee. also, edumine provides online courses on a variety of minining related topics which are very useful

nuke

So nuke,

if I can ask which subscription you have/will subscribe to? Sooo many options to subscribe to. Is there a benefit to look behind the "golden door" of that site?

I have watched MOL and researched to a moderate capacity. What info would the infomine site have that free sites would lack? That goes for all other specs in this sector. Consolidated information is the only advantage yes?

 

[michael_selway]

hey YT,

infomine.com is the best and biggest mining datatbase. im not a subscriber but will be very soon. the info they provide is well worth the subscription fee. also, edumine provides online courses on a variety of minining related topics which are very useful

nuke

Hi Nukeits not bad, it has up to 15 years historic price charts, kitcometals only has 5!

http://www.infomine.com/commodities

thx

MS

 

[YOUNG_TRADER]

Moly has got EPA approvals for their Spinifex Ridge Moly project

EPA RECOMMENDS SPINIFEX RIDGE MOLYBDENUM PROJECT FOR MINISTERIAL APPROVAL
Moly Mines Limited, (MOL – TSX/ASX) is pleased to advise the Environmental Protection Authority of Western Australia (EPA) have today released their “EPA Bulletin” which contains the EPA’s report and recommendations to the Minister for the Environment on the Spinifex Ridge Molybdenum Project proposal. Section 44 of the Environmental Protection Act 1986 (EPA Act) requires the EPA to report to the Minister for the Environment the outcome of its assessment of a proposal. The report must set out:
• the key environmental factors identified in the course of the assessment; and
• the EPA’s recommendations as to whether or not the proposal may be implemented, and, if the EPA recommends that implementation be allowed, the conditions and procedures to which the implementation should be subject.
The proposal put to the EPA by the Company considers an open pit mining operation and processing facility capable of treating 20 million tonnes of ore per annum. The EPA has concluded that it is unlikely that the EPA’s objectives would be compromised by implementing the Project and have recommended the Project proposal tabled by Moly Mines be approved subject to implementation of certain conditions, all of which are considered by Moly Mines to be reasonable and manageable through the Company’s best practice systems.
The EPA Bulletin is open now for a 2 week public appeal period, and depending on resolution of those appeals, if any, the final ministerial approval process will commence.

 

[goatpointer]

RE: EPA Bulletin
The 2 week public appeal period is now well over. I've seen nothing about progress or otherwise with this.
How confident can we be that final Ministerial approval will be given? (And when?)
Goatpointer

 

[SM Junkie]

There does not seem to be much interest in Moly Mines, despite some positive announcements from the company, I wonder why this is?

Recent announcements include:

• Hematite iron ore discovered, not sure how much yet.
• Signed a 10 year agreement with TKMet for all of the molybdenum
• 43% increase in the Spinifex Ridge Molybdenum/Copper Project’s Proven and Probable Ore Reserves to 451 million tonnes @ 0.05% Mo and 0.08% Cu
• The resource base Ore Reserves likely to extend mine life beyond 30 years .
• It is also likely to support an operational expansion to at least 30 million tonnes per annum.

Perhaps once Ministerial approval is granted more interest will occur. Personally I think Moly are looking good.

 

[YOUNG_TRADER]

SM

I was just looking at MOL (don't hold any as its not my kinda stock) but wow those Fe hits were amazing,

Surprised the mkt hasn't stood up and taken note,

Then again the mkts are ****ed at the moment

But like I said those are some very very impressive Fe hits, very impressive!

 

[Schmuckie]

Moly Mines is continuing to take a hit, even with continued good news that show improved fundamentals for the company. Most junior resource stocks are taking a hit right now, and MOL is no exception. For people holding long, is this "steak on sale" or is there any reason to be cautious in buying?

Many thanks,
Schmuckie

 

[YOUNG_TRADER]

More amazing Fe hits for MOL from surface too so very little if any over burden

And those grades of 60% Fe are DSO!

Problem for MOL is that they are a large Molybdenum mine developer/soon to be producer and hence the Fe while very impressive isn't appreciated by the market,


Does bode very well for the Iron ore prospectivity of the surrounding grounds and these results are to the west of the first results suggesting perhaps continuation of mineralisation to the west?

MPJ 's Talga Peak is directly to the west, something to keep in mind

 

[AnDy62]

Schmuckie,
I hold a few long term. The main concern is financing, the need to raise a lot of money to get a mine this size up and going, can't remember the figure off the top of my head, think about a billion. If financing can be done on ok terms then I think MOL is fundamentally undervalued, considering the cash flows they will generate.
YT,
Just saw your post. You're obviously the guru on these sorts of things, the grades were good I take it. But I've heard it may be expensive to extract because of the silicate levels or something?? Still a good discovery I hope!

 

[YOUNG_TRADER]

Hey Andy,

You'll notice that MOL is hitting a mixture of Haematite and Magnetite, similar to what GBG has at its Karra deposit (I think its Karra)

The point is as the Fe grade drops from 60% the impurity levels naturally increase and for Magnetite such high silica grades are not uncommon and are usually easily removed via the benefication process

The main problem for MOL is it is a Molybdenum company and thus such a nice Iron Ore project in the Pilbara type area while very promissing will not really influence MOL's share price or market cap too much, its kinda like when RIO announces another 500Mt's of 62% DSO Fe

I would think the best move for MOL to realise full value in these mkts is spin off the Iron ore rights into a new Iron Ore company and give shareholders a free in specie distribution, this is what companies like GIR have done very succesfully of the years (ie with RHI)

I would suspect that such a free standing Iron Ore IPO company would have a mkt cap of $50m at least and thus more truly reflect the Iron ore project and value

Note I don't hold MOL, but have been watching the Iron Ore story unfold as I hold MPJ directly to the West

 

[noco]

Schmuckie,
I hold a few long term. The main concern is financing, the need to raise a lot of money to get a mine this size up and going, can't remember the figure off the top of my head, think about a billion. If financing can be done on ok terms then I think MOL is fundamentally undervalued, considering the cash flows they will generate.
YT,
Just saw your post. You're obviously the guru on these sorts of things, the grades were good I take it. But I've heard it may be expensive to extract because of the silicate levels or something?? Still a good discovery I hope!

Yes you are right, the cost to develope the iron ore is probably too much for Molly mines.
Have noted a comment from the CEO Dr. Derek Fisher that "due to the current intensive focus on the Sinifex Ridge Molybdenum project and its financing, an option currently under consideraton for this non-core asset is to invite expressions of interest from third parties to capitalize on the iron potential of the tenements."
Hope this throws some light on your concern.

 

[michael_selway]

Yes you are right, the cost to develope the iron ore is probably too much for Molly mines.
Have noted a comment from the CEO Dr. Derek Fisher that "due to the current intensive focus on the Sinifex Ridge Molybdenum project and its financing, an option currently under consideraton for this non-core asset is to invite expressions of interest from third parties to capitalize on the iron potential of the tenements."
Hope this throws some light on your concern.

Hi Sounds good

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -1.6 -1.5 13.0 45.0
DPS 0.0 0.0 0.0 0.0

Date: 10/7/2008
Author: Michael Vaughan
Source: The Australian Financial Review --- Page: 20
Moly Mines is attempting to raise $A1.4 billion for its Spinifex Ridgemolybdenum project. In July 2008, Moly announced hopes of raising funds for theWestern Australian project, which will be supported by 70% debt and 30% equity,by September, after delays due to the rising cost of debt. Most fund raisingwill be attempted in the final few weeks before the deadline, but with highyields in the current bond market, Moly may need to secure bridging finance tokeep up momentum. ThyssenKrupp and Harbinger Capital have expressed interest inbecoming involved in financing the project

thx

MS

 

[resourceboom]

yes it does sound good, and it will have a very long mine life too! It is something like a minimun of 20 years!

 

[renim]

if the fe good enough, twiggy might dig it - road miner style.


disclaimer
i've got some mol, it's been a dog compared to fmg

 

[bvbfan]

Having a ripper of a night on the TSX up 35%

Could funding news be in the offing or perhaps a juicy takeover bid?

I'd lean to the funding but you never know.