GREY:MLKKF - Post by User
Post by
24~Karaton Sep 16, 2007 8:50pm
402 Views
Post# 13407526
Ahead of the Pack
Ahead of the Pack►Eric Sprott drops a bombshell in the “Bay Street Week Ahead” column excerpted below. He states that current liquidity conditions will stall several molybdenum mines. And is there anyone in a better position to know than the CEO of the Sprott Moly Participation Corp?
This situation plays beautifully into the strong hands of Mercator Minerals, as they continue to make rapid progress towards their annual production of 10 million pounds of moly. On the one hand, the commodity itself will become a bit more scarce, and thus the market price that ML realizes will reflect that reality. And on the other hand, it gives them an advantage in securing an acquisition, which the company stated as one of their objectives in a public interview last April.
There is also a third factor to take into account. It enhances ML’s stature as a takeout candidate.
From Rueters:
Some miners are trying to secure temporary bridge financing because equity issues are expected to get a chilly reception from the market, (Haywood Securities mining analyst Kerry) Smith said.
But many analysts say that borrowing has become more expensive and harder to secure.
"Financing is more difficult now. The cost of money just went up, if it's available at all," Eric Sprott was quoted as saying in Platts Commodity News.
The liquidity squeeze could stall several molybdenum mines, the chief executive of Sprott Molybdenum Participation Corp. (MLY.TO: Quote, Profile, Research) added on the recent earnings conference call.
https://www.reuters.com/article/marketsNews/idUKN1439721420070914?rpc=44