Holy Moly ! Miner's share price doublesHoly Moly! Miner's share price doubles 
Surprised ! Example that this stock moves quickly upwards in 1 day
Hot in Canada … Moly Mines, which plans a $608 million molybdenum project in the Pilbara, has fans in North America.
Photo: Erin Jonasson
Jamie Freed
March 23, 2007
MOLY Mines' local fame was always linked to its controversial former chairman, Andrew "Twiggy" Forrest, but the Perth molybdenum explorer has since emerged as the flavour of the week in Canada.
The company, which was granted a dual-listing on the main board of the Toronto Stock Exchange last year, has seen its share price double this week.
It was the most traded stock on the Canadian exchange on Wednesday night, with 11.4 million shares changing hands.
Moly Mines managing director Derek Fisher, who recently returned from a month-long roadshow in North America and Europe, said overseas investors liked his company's story.
"The Australian market has taken little attention of us," Mr Fisher said. "That's why we've gone to Toronto."
The initial public offering for the $C75 million ($80.6 million) Sprott Molybdenum Fund has been promoted in Canada during the last week.
Molybdenum, called "moly" within the industry, is an ingredient in high-performance steel such as that used in the oil and gas industry. The commodity's spot price averaged only $US4.50 a pound in the 10 years to 2004 but hit a record $US40 a pound in 2005. It fell to $US25 a pound, but is rising again due to a proposed restriction on Chinese exports.
"It's a metal for our time, as we say," Mr Fisher said. "The stars are aligning at the moment."
Moly Mines is finishing the feasibility study for a $US488 million ($608.2 million) moly development in Western Australia's Pilbara region which could be in production by 2009.
The Spinifex Ridge project, containing 621 million pounds of moly and 932 million pounds of copper, has a 20-year mine life and would make the company a major global moly producer. The project economics are based on a long-term moly price of $US12.50 a pound.
Paradigm Capital, the Canadian broker which assisted with Moly Mines' TSX listing, has a "buy" recommendation on the stock. Two other Canadian broking firms are preparing research reports on the explorer, but it has yet to receive any analyst coverage in Australia.
Moly Mines hasn't lined up financing, but Mr Fisher said steel companies in Korea, Japan and India were looking to lock up a secure moly supply since Chinese exports were expected to fall. He said there had been talks with cornerstone investors, but none were rival miners.
Mr Forrest resigned from the company's board last year, but retains 12 million options exercisable at 20c each. Moly Mines shares closed yesterday up 91c at $3.64 - up from $1.83 a week ago - meaning Mr Forrest is sitting on a $41 million paper profit.
https://www.smh.com.au/news/business/holy-moly-miners-share-price-doubles/2007/03/22/1174153256571.html