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.
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.
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?
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.
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.
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.
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...
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
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
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
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.
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.
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