Interesting from Angora Financial emailThis is copied from an Angora finacial email I get. Has to do with Moly's potencial. Yes, Leeward is out of money at the moment, but it still has Nithi mountain close to Endako Mine with the same Moly deposit. Time will tell.
Molybdenum is one of the most interesting metal minerals from an investmentstandpoint. That's why I have recommended
Thompson Creek (
TC:nyse),a major miner of molybdenum, to the subscribers of my investment letter,
Capital & Crisis. I've stuck with this story despite agut-wrenching, hair-whitening ride. Over the last two years, the stock hastraded as high as $25 per share and as low as two dollars. It currently sits at$11.70. The story here is all molybdenum, the price of which has drifted down toabout $11 a pound from prices around $35 in the middle of last year. So if wedon't see a rise in moly prices, TC isn't going anywhere.
But longerterm, I see good reasons for moly to rise, mostly tied to the story of steeldemand, against a rather tighter supply of moly. But for now, the company had$262 million in cash last quarter end. It also raised another $200 million afterthe quarter ended. So the market cap is now about $1.6 billion and the companyhas practically no debt and nearly $500 million in cash.
Thompson Creekcould be acquired by a copper miner, such as Freeport- McMoRan, looking to boostits exposure to moly. More likely, I think, is that Thompson Creek uses its cashhoard to buy a more-cash-strapped competitor. We'll see. But the stock seemsripe for M&A with all that cash.