Buy the Rumor looking good right now! Andrew Zemek from the CPM Group, a fully independent research and consulting company focusing on precious metals and commodities markets speaks about Molybdenum.
Takeaway
*Most Molly used in steel production or Oil and LNG pipelines.
*World Bank recently stated molybdenum is a critical metal needed in 7 of 9 green energy technologies
•High battery potential as molybdenum has up to 4 times the electrical capacity of lithium
China Economy revving back up.
World Bank says 73M lbs of new Moly demand coming from the Renuable Revolution is on the way
Biggest factor in Molly market is Declining Supply due to low prices, covid and the lack of new mines. Chilian companies suffering from threat of Nationalism.
CPM sees a global deficit in Molybdenum for 4 to 5 years with Prices to remain high for several years.
Very few new projects in the pipeline
Anything above $ 12 - 13/lb (say what?) very much incentifys new production but you need to know those prices will stay to make decisios to development a new project.
When asked How can investors best get exposure to Moly? Andrew Zemec answers , do your homework on the best moth balled projects that were hot in the past.
Me thinks were going to soon look like rocket scientists here. At $32/lb Molly, future demand, supply deficit, $46 million spent on development Engineering and metallurgy studies already done, makes a Perfect storm for a development ready permitted project like Stuhinis Ruby Creek Molybdenum Project.
Stuhini has to be a target right today. Only need some more positive sentiment and market awareness to get this project understood by the market.
Fundamental Research put this report out in 2007 on the identical project when it was known as the Adanac Molybdenum Corp Molybdenum Project.
In 2007Adanac Molly AUA.T had 108k fully diluted shares. The report valued the project NPV at $242 M with $15 Molly ( Less than Half todays price) They valued AUA.t at $5.85/ share
$5.85 x 108M OS = $630 M Market cap
To bad for them, the 2008 market crash came on and killed the company.
And to think I 1st bought Stuhini for the mgt and plethora of top-notch gold silver Nickel projects and their proximities
https://www.baystreet.ca/articles/research_reports/fundamental_research/adanac051007.pdf