RE: Strong PGM grades-mistyOn Moly supply, I would have agreed with you as recently as a few months ago. Since then, Ruby Creek seems in deep trouble. Thompson Creek lowered guidance. Roca isn't ramping up anywhere near as fast as expected. Mercator will barely produce any Mo this year. Small producers can barely maintain production. Many Cu-Mo by-product producers are seeing falling grades as they mined high grade deposits thinking Mo was in a temp spike - it turns out they shot themselves in the foot as Mo looks to start spiking in '08 and '09. China banned new Moly mines and may turn from big exporter to an importer in the next 3-5 years - and when that happens, it's a new ball game in Moly.
There is a 2-3 year gap in supply and big deficits building in '08 and '09. Moly is gonna spike.
And that's why I am buying big into Moly Mines - will be the first big mine in this cycle and will grab high Moly prices and generate huge cash flows. But I wouldn't care if the current valuation wasn't extremly cheap and mispriced. I think MOL has a legitmate shot at $15-$20 in the next two years, up from $3 today. I am positive it is a multi bagger. The only question is how many.
So many good buys out there right now. Largo is just one of many that I see.