Australian (ASX) Stock Market Forum

MOL - Moly Mines

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bvbfan said:
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.
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Hmmm. I came here looking for an answer, thinking someone closer to home might know. Picked up a few more shares last week, but held out on picking up even more while I waited for a slightly lower price. Maybe I should have just bought more then.
 
bvbfan said:
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.
Click to expand...

yeah mate, ann out today, request for trading halt due to funding announcement due out later today, can't wait, I hold a small amount in my super fund ;)
 
The ann came out an hour or so.
Looks like good news.
Interesting to see what will happen to the price.
Good luck holders!
 
Wysiwyg said:
I received this pump in the e-mail today.

Tiny Aussie Miner Discovers $17.8bn ‘Energy-Metal’ Deposit

Spinifex Ridge molybdenum-copper project fits the bill as far as being in the Pilbara, market cap. around $185 million and around $2 share price.

Anyone agree that the "Energy Metal" is molybdenum and the company is MOL?
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Agree wysiwig...same quoted melting point....same 43% resource increase....worth buying?? At these levels maybe worth getting a smallish position to build on just in case it does start to rise? Who knows?
 
I see Mol is in a downtrend but sitting on 1.7 support for the third time. Could be an interesting test. I'll probably buy some if it holds.
 
Anyone know what happens with this stock?

They have got the interim financing approved but the stock still dives in day by day for the past week or so now...

Is it just because of the metals outlook? Any supporting charts for this would be great
 
The word is it getting smashed but hold on it should come good over time.
Think I read that in Diggers and drillers been looking at it myself.
 
Yep well the next stop is $1 if not there then .50c is the bottom of the long term down trend.

I ended up with some at 1.14 today so it looks like i'm in the for the long haul. Hopefully the pieces come together.
 
Glen48 said:
The word is it getting smashed but hold on it should come good over time.
Think I read that in Diggers and drillers been looking at it myself.
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The article by Al Robinson (son of robin hood maybe :cautious:) at around $2 and at the end he says and I quote.

P.S. With its massive natural resource endowments and a distinct geographical advantage over its South American competitors, the Australian resource sector is set to boom as long as China does. Savvy investors will be looking for ways to profit from this.

No newsletter on the planet is best positioned to help you do this. To try Diggers and Drillers risk-free for three months, click on the link below.

P.P.S. Stop Press! The ‘Energy Metal’ company I want to tell you about has just signed a 10-year off-take agreement with ThyssenKrupp. ‘Energy Metal’ concentrates from the mine will be shipped to a plant in Chile for conversion. This is another step towards full-scale production... and another reason to own this stock IMMEDIATELY.
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Someone tell him we`re in a bear market.
 
What happened today? It is now over 35% lower then any other time in the last 12 months. And it has been as high as $5! And on the back of no news! Posite P/E. Postive outlook. And down 22% today on the back of nothing! What gives?

Disc: I don't hold MOL.
 
frankblack said:
What happened today? It is now over 35% lower then any other time in the last 12 months. And it has been as high as $5! And on the back of no news! Posite P/E. Postive outlook. And down 22% today on the back of nothing! What gives?

Disc: I don't hold MOL.
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A massive resource, a good looking DFS, and a 10 year off take deal all sounds wonderful but the 1071millAUD capex requirement sounds like an impossible dream. I would worry about them starting to move on the strength of the 150mill USD interim finance package with no certainty of being able to fund the job... warning bells...
 
J.B.Nimble said:
A massive resource, a good looking DFS, and a 10 year off take deal all sounds wonderful but the 1071millAUD capex requirement sounds like an impossible dream. I would worry about them starting to move on the strength of the 150mill USD interim finance package with no certainty of being able to fund the job... warning bells...
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I think you've pretty much hit on the crux of the matter here Nimble. Having most of your boxes ticked off is great i.e. positive DFS, robust Resource figures etc, but you also need a tick in the biggest box of all, funding. You would have to think that TCW wouldn't have contributed to the kitty without some kind of reasonable expectation of getting a good return from MOL however, but it all looks a little scary right now.

jman
DNH
 
jman2007 said:
I think you've pretty much hit on the crux of the matter here Nimble. Having most of your boxes ticked off is great i.e. positive DFS, robust Resource figures etc, but you also need a tick in the biggest box of all, funding. You would have to think that TCW wouldn't have contributed to the kitty without some kind of reasonable expectation of getting a good return from MOL however, but it all looks a little scary right now.

jman
DNH
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True...seems odd that considering the scale of the project that TCW would finance 150 mil without concern to future funding, in the offtake agreement TKMet agreed to particiapte in the equity financing component....guess depends what position these co's are in and the demand for Moly at the time.

small holding....was smallish but now small:)
 
bvbfan said:
Moly would be a major energy play.
Both for oil/gas infrastructure in pipelines as well as drilling equipment.

Also moly used widely in nuclear reactors.

http://www.stockinterview.com/molybdenum.html
http://www.molyinvestingnews.com
http://www.resourceinvestor.com

Have some good articles on Moly
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What an interesting link bvbfan, especially the article on how to select a good moly mine.

James Finch is stating a good mine should be in the order of .1% -.2% from an open cut mine at a base cost of 10 pound sterling to produce.

Moly Mines have 24 million pounds of MOS2 at .05% per tonne, plus 27 million pounds of CU. Based on 34 pounds sterling ($80) per pound for MOS2, this would equate to $1.8 billion, plus the returns from the CU.

The initial financing from The Trust Company of the West to the tune of $150,000,000 is to kick start the operation. A total Cap Ex of $1.1 billion will be required over 7 years and would no doubt be financed from sales prior to that time period.

IMHO it looks good on paper. However, I cannot understand why the SP of these shares has diminished to the level of $0.905 last Friday. This share has been as high as $5.00.

In comparison, Thor Mining PLC has 2.21 million tonnes of MOS2 at .21% per tonne.
 
Santoro said:
True...seems odd that considering the scale of the project that TCW would finance 150 mil without concern to future funding, in the offtake agreement TKMet agreed to particiapte in the equity financing component....guess depends what position these co's are in and the demand for Moly at the time.

small holding....was smallish but now small:)
Click to expand...

Moly Mines have signed a 10 year off-take agreement with TKMET of Germany for all of the molybdenum production from Spinifex Ridge moly project, priced on the prevailing market price and conditions at the time of sale.

This agreement is the key-stone to the project financing with TCW whom imho would not commit themselves to $150,000,000 if ther was some doubt to Moly Mines success.
 
noco said:
Moly Mines have 24 million pounds of MOS2 at .05% per tonne, plus 27 million pounds of CU.
In comparison, Thor Mining PLC has 2.21 million tonnes of MOS2 at .21% per tonne.
Click to expand...

Thor therefore has 4 872 215 994.3 pounds (almost 5 billion pounds)

You obviously meant pounds for Thor.
 
noco said:
The initial financing from The Trust Company of the West to the tune of $150,000,000 is to kick start the operation. A total Cap Ex of $1.1 billion will be required over 7 years and would no doubt be financed from sales prior to that time period.

IMHO it looks good on paper. However, I cannot understand why the SP of these shares has diminished to the level of $0.905 last Friday. This share has been as high as $5.00.
Click to expand...


You might be confusing the mining contract with the Capex. The mining contract with McMahon is A$1.1bill over 7 years (ann Feb15). The Capex is estimated in the DFS as A$1071mill including sustaining capital of 53 million over the first ten years of operation.

The annual report indicates they already have project commitments of A$191mill. Long lead time equipment was preordered to keep the project on the fast track - the horse has well and truly bolted... Along comes the credit crunch. They have A$48.6 mill cash and equivalents vs payables of A$32.4mill. And now they have US$150mill debt financing coming in. A long way to go to get to A$1071 mill. TKMet will chip in but it still looks a very tough ask in this climate, off take agreement or not.
 

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