Molybdenum - next hot commodity?

[Sean K]

Does anyone know much about Wedgetail Mining Ltd (WTE)?
I came across WTE which seems to have been concentrated on gold but by chance seems to have come across a potentially world-class moly resource which they have called the Millenium prospect. Initial results seem to suggest that the Millenium prospect could be a resource in an order greater than the world-class Spinifex Ridge deposit being conducted by Moly Mines Ltd (MOL). The WTE Millenium project is located about 115km to the south of the MOL Spinifex deposit.
WTE is on my watch list (currently trading at 17c) but i'd be interested to know what others think of this one.

Hi Paul. Interesting. When are they going to drill test the system? All they state is "a campaign of concerted drilling over the coming months." Bit vague. Will be interesting to see how it developes.

 

[dubiousinfo]

Both tungsten and moly prices have been strengthening, but the firming up of tungsten prices has been overshadowed by the surge in moly prices from US$25/lb at the beginning of the year to close to US$40/lb recently.

Moly is used in high-performance steels in the oil and gas industry, nuclear power stations and desalination plants. The crux of the matter however, is that about two-thirds of all oil pipelines will have to be replaced because their steel does not contain moly.

However, in virtually every case the Australian projects being brought online by prospective producers have been fraught with delays. This is mainly due to the notoriously difficult nature of specilaty metals projects to obtain debt financing for, due to thin markets, and the fact that in the past China has flooded the market with cheap tungsten and exerted a disproportionate level of control over prices.

Queensland Ores is the only fully-funded development from 100% equity sources, but is tungsten only, but is in a good position to benefit from the current high tungsten prices.

Cheers!
jman2007

QOL - Queensland Ores will be mining Moly as well as tungsten.
The planned production from the BFS was 321,000 lbs of molybdenite in concentrates per annum. Following the upgrade of the resouce, the expected mine life will be 5 years with the possibility of extending this with further drilling.

 

[jman2007]

Hi there,

Apologies, I stand corrected, the Wolfram Camp lease is indeed both moly and tungsten.

cheers
jman2007

QOL - Queensland Ores will be mining Moly as well as tungsten.
The planned production from the BFS was 321,000 lbs of molybdenite in concentrates per annum. Following the upgrade of the resouce, the expected mine life will be 5 years with the possibility of extending this with further drilling.

 

[FUTUREFUND]

Article in the Australian today-pure speculation stating the continual growing demand for Molybdenum and a focus on moly juniors.

Indium the next Molybdenum ? in the same article, china has been one of the main suppliers but output is expected to drop by more than 50% in 2007.


FUTURE LOOKS BRIGHT FOR MOLY AND MAYBE INDIUM

 

[michael_selway]

Article in the Australian today-pure speculation stating the continual growing demand for Molybdenum and a focus on moly juniors.

Indium the next Molybdenum ? in the same article, china has been one of the main suppliers but output is expected to drop by more than 50% in 2007.


FUTURE LOOKS BRIGHT FOR MOLY AND MAYBE INDIUM

Hi what were the "moly juniors" mentioned?

thx

MS

MOL - Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -1.6 -14.0 -14.0 117.2
DPS 0.0 0.0 0.0 0.0

 

[Bushman]

Another company to add to the moly watch list - Hodges (HDG). Currently performing due dilligence drilling on its Victorian moly deposit. Also holds uranium exploration licences in Sweden.

From the announcement today:

MOLIAGUL MOLYBDENUM PROJECT
• Drilling programme commenced.
• Option to earn a 90% interest in a major Moly project situated in Victoria.
• Large widths of high grade mineralisation reported from historic drilling.

No further details on the grades etc as drill results are yet to be announced. From memory previous ann said historical drill results had good intercepts.

Currently trading at 32c per share. Pre August correction it was +90c mainly based on uranium mania.

Keeping an eye on it.

 

[Sean K]

Hi-tech outfit first in moly queue
Robin Bromby | October 22, 2007

MOLYBDENUM exploration in Nigeria: there's a concept to conjure with. But why not? In this remarkable commodities boom, no metal is unloved, no place too politically risky and no exploration story too ambitious.

It has been interesting to watch the number of hi-tech juniors suddenly finding redemption in the resources sector, and IC2 Global was one of the early movers.

The company's main focus had been its wireless business but in February 2006 it took an option to farm-in to an iron project inland from Geraldton and rub shoulders with the likes of Mount Gibson Iron, Gindalbie Metals and Ferrowest.

IC2's Victory Bore subsequently became a vanadium project and exploration continues.

Now IC2 has begun due diligence on a molybdenum target in Nigeria's Plateau state, which has had its share of problems, including some nasty inter-religious massacres a few years ago.

But Denis Battrum, who produces a daily summary of molybdenum news from his Kansas City office, has a report out that shows molybdenum to be one of the coming things because of its role as a steel strengthener.

Moly is used in steels and alloys for pipelines, oil and gas drilling bits, in power plants and is used by petroleum refiners.

Battrum says there are 146,500km of pipelines planned or under construction in 2007, a 30.4 per cent gain on 2006.

Russia, for example, is building the $US13.7 billion East Siberia-Pacific Ocean pipeline to deliver crude to the rapidly growing ranks of gas guzzlers in China.

And pipeline construction in South America this year will be about three times the rate of last year.

Moly in pipeline steel means reduced weight and therefore lower steel costs.

But most pipes are still made without molybdenum and Battrum argues that world moly demand will soar if even half the planned pipeline kilometres are converted to using moly-laced steel.

Along with IC2 Global are plenty of companies in the moly queue.

In the past few days, D'Aguilar Gold reported new high-grade extensions to its Anduramba molybdenum project inland from Brisbane, meaning the company will be looking to increase its existing resource of 26.6 million tonnes.

Aussie Q Resources reports grades up to 0.753 per cent molybdenum at its Whitewash project in central Queensland and Dragon Mining has acquired a molybdenum-copper project in northern Finland.

 

[jman2007]

What's going in with Moly Companies?...

I've noticed a general downward trend in MOL, QOL (despite securing offtake agreement) and THR over the last 2-3 months, despite the commodity price having only dropped recently by $US2/lb to $US33/lb....

Any thoughts on this guys/girls?

jman

 

[Sean K]

Something fishy happened in Moly today. Short squeeze perhaps.

 

[frugal.rock]

Surging molybdenum price adds weight to new year rally for copper producers

Copper mining byproduct molybdenum is up more than 50% in a little over a month, boosting margins for producers.

www.mining.com

Hand in hand with iron and steel.
The big jump appears to be hopium fuelled rather than a shortage?, unless I'm missing something.
Expect a thud when rocket motor runs out of boron...

 

[frugal.rock]

Not sure about the data behind your chart there @Sean K
The blockiness of the line suggests the time frame might well be large.
Monthly, maybe quarterly? ? Dunno, just guessing.
China spot. Weekly bars.
(AM-99C-MLBR)

 

[aus_trader]

Once upon a time, there was a Moly play on asx named Moly Resources or Mines or something like that, ticker symbol MOL. What happened to that ?

Are there any current Moly plays on the asx at the moment ?

Haven't looked into this commodity in ages...

 

[Austwide]

@frugal.rock Looks weekly having 9 bars for 2 months roughly

 

[Sean K]

Not sure about the data behind your chart there @Sean K
The blockiness of the line suggests the time frame might well be large.
Monthly, maybe quarterly? ? Dunno, just guessing.
China spot. Weekly bars.
(AM-99C-MLBR)

View attachment 151767

Something wrong with Trading Economics website perhaps. Still showing $73.50 a kilo.

 

[Sean K]

Anyone know what's going on here? Still strange action.

 

[frugal.rock]

Dunno, but same chart as per my last.
Weekly bars on mine again.
Up ~26% in a month...

 

[Sean K]

Dunno, but same chart as per my last.
Weekly bars on mine again.
Up ~26% in a month...

View attachment 153152

6 month return is quite extraordinary but it's pretty quiet on the news front.

 

[aus_trader]

We are not in the major supply country list, so I don't think there's much investing opportunity in Australian stocks when it comes to Moly exposure !

China, Chile followed by USA takes spots on the podium...

 

[Sean K]

We are not in the major supply country list, so I don't think there's much investing opportunity in Australian stocks when it comes to Moly exposure !

China, Chile followed by USA takes spots on the podium...

View attachment 153304

I had a pile stacked in a company in QLD about 20 years ago that had what seemed to be our best moly deposit and they've disappeared from the ASX, or changed their name. It was near Mt Isa. Can you recall that?

 

[Dona Ferentes]

I had a pile stacked in a company in QLD about 20 years ago that had what seemed to be our best moly deposit and they've disappeared from the ASX, or changed their name. It was near Mt Isa. Can you recall that?

DGR - D'aguilar Gold ??