Newmac Resources Inc V.NER.H

article m. Fulp

[Baron28]

Does not promise us big gains.....



Molybdenum porphyries: Molybdenum is the most fickle metal on the face of the Earth. Price is controlled by supply as a by-product from giant porphyry copper mines (60%) and recycled scrap steel (30%) and worldwide demand for alloy steel, resulting in historically volatile price ranges. About 10% or so is supplied by primary producers; that amount is the “swing” and this production is highly dependent on world economic health and cyclical supply and demand of the steel industry. China is the largest primary producer and the United States is second with four major, high-grade western mines. Three months ago, it was projected to be five U.S. producers with one of the best orebodies in the world (Climax) re-opening in 2010. But in a three-week span, the molybdenum price fell from $33/lb to $11/lb and development was suspended indefinitely by Freeport McMoran Inc. This is not a commodity where a junior can successfully develop a competitive deposit or get taken out by a major

https://www.stockhouse.com/Columnists/2009/February/24/Laymen-s-guide-to-investing-speculating-in-junior-