RE:RE:Moly going forwardTelemarker and jandd ,
As you two already know, we’ve had a good run up in molybdenum prices from US$10.00 / lb in the first half of 2021 hitting US$20.00 /lb on two ocassions. It looks like moly is establishing a new trading range of US$18.00 - US$20.00 / lb. A break out above this current price range will in all likelihood see an influx of investment into the moly space.
Getting in early on a few of the better moly plays could prove prudent for the coming years ... spread some money around the best of the known deposits. You two have cited the best from what I have seen .... agreed that this Malmbjerge project may be the best undeveloped moly deposit grade-wise, but from a practicality point of view, the remoteness will probably result in significantly increased operating costs in comparision to some of the other noted deposits.
I'm currently invested in one other advanced Climax-type moly play in Western Canada, fully permitted, and the former operator had just decided to go into production, based on their resource estimate and feasibility study, when moly prices collapsed in 2008-09. I’m looking at the Malmbjerge deposit for a possible comparison. May even throw a few shekels at this play in the not too distant future as well.
Going to be quite the undertaking to develop Malmbjerge due to remoteness. I’m wondering what the estimated CAPEX is estimated to be for a processing facility and infrastructure, and what is the %age contingency factor for cost overuns for this project ? Operating costs definitely going to be impacted by remoteness. If the Europeans want to push this project through to production with the use of government subsidies to proceed, that may help ....
BTW Telemarker ... I use this site for moly quotes ....
https://www.lme.com/en/Metals/EV/lme-Molybdenum-Platts#Trading+day+summary GLTA !
TELEMARKER wrote: good post
Ignoring any asteroid mining
CUMO deposit in Idaho is another - MLY ticker
Davidson Smithers BC underground deposit - drilled, undeveloped
Roca Mines underground at Trout Lake BC, shutdown since 2010
Northcliff NCF in New Brunswick - undeveloped open pit
Several other Yukon, New Mexico
Several in Australia - one named Merlin in Queensland, other one proposed open pit in Western Australia
Our Projects - Chinova Resources Merlin Underground Mine
Chinova also has the high-grade molybdenum / rhenium (Mo/Re) Merlin Underground mine on care and maintenance. Merlin has an ore reserve of 5.2M tonnes @ 1.3% Mo, 22ppm Re, 0.24% Cu. The Merlin Feasibility Study was completed by Chinova in 2014 and the project was planned to commence, however when the Mo price collapsed shortly after project approval, the project was placed on care and maintenance.
Merlin has 3.5km of access decline already developed and is within 5km of Starra so these mines would share extensive infrastructure. The Merlin dewatering system is maintained to provide raw water to the EML Project.
BC
moly_september_2015.pdf (gov.bc.ca)
Moly going forward
I think you guys are wrong wrt the moly curve going forward. By-product production is dropping off and Climax has only 4 years left. For sure Freeport has some development plays in the area but permitting in CO just about impossible nowadays. 20 years of underinvestment in the moly space will pay off in spades for the few quality deposits out there.
This recent price uptick was due to demand from the steel side, rumors are that China has been stockpiling as they need to use a higher moly content with their steel products to get in line with the rest of the industrialized world.
The world bank has stated that Molybdenum is a critical mineral needed in all future green energy technologies
A recent science direct article claims that moly is running out:
https://www.sciencedirect.com/science/article/pii/S0921344918300958 It’s not like only one deposit will be developed, but the reality is that there are only 4 decent deposits outside of the Freeport realm, the rest are much smaller and lower grade or not very far along the development stages… These would be of course Malmbjerg, Mt. Hope, Ruby Creek and Kitsault… the rest are wanna-be’s including both of Centerra’s assets albeit they are past producers and have the infrastructure there, but the orebody size and grades don’t compare to the above…
It looks like the space is going to heat up, and the time to get positioned is ahead of the crowd. Malmbjerg is the best of the bunch, but it does not compare to Climax, and the cost of building in Greenland is often unsurmountable. For sure if Malmbjerg was located in North America, it would be in production.