Hi Everyone This is my first post (reposted with adjustments) and I would to introduce myself. I’ve been trading stocks for about ten years. I like venture stocks and I do as much research as I possibly can before I commit to any position. I’ve just finished accumulating a molybdenum stock and I wanted to share my findings to generate some likeminded interest. Stock code of the company of interest is MLY.V (Cumo Co) https://cumoco.com/ Before I talk about the stock I’ll share some of my research on molybdenum that forms the basis for my Top-Down investment approach. Molybdenum is number nine on the “British Geological Survey” supply risk list. You will find this information on the following link https://www.bgs.ac.uk/mineralsuk/statistics/risklist.html You will need to click “Download the Risk list 2015 publication” on the bottom the page. China the current largest producer and a net Importer of 16.1 million pounds. Information from link below on slide 17. The whole presentation is worth a read regarding molybdenum.https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwj66ovr1LLXAhWDW5QKHVO5CnMQFggmMAA&url=http%3A%2F%2Fphx.corporate-ir.net%2FExternal.File%3Fitem%3DUGFyZW50SUQ9Njc3MTE4fENoaWxkSUQ9Mzg1MjM2fFR5cGU9MQ%3D%3D%26t%3D1&usg=AOvVaw0fEdWUQGmAdv16YgfczmPh London metal exchange stock pile of molybdenum is zero. Link below for you to see opening stock is zero. https://www.lme.com/Metals/Minor-metals/Molybdenum#tabIndex=0
Supply of Moly is down for the year as major high cost US and Chinese producers shut down. Mt Hope of GMO cost to produce is $6.28 IB (It’s a high cost producer)
USA stockpile of molybdenum is zero link below be sure to read the whole thing. https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=0ahUKEwiN9fGY17LXAhVMGJQKHYAaB1IQFggyMAU&url=https%3A%2F%2Fminerals.usgs.gov%2Fminerals%2Fpubs%2Fcommodity%2Fmolybdenum%2Fmcs-2017-molyb.pdf&usg=AOvVaw1KMO_smrA6yKp_loBhdIH_
Oil and molybdenum are heavily correlated and oil is slowly recovering. This information can be found on the GMO link provided earlier, again be sure to read the whole presentation.
Chinese spot market selling Moly at $8.725 US (https://www.comelan.com/En/) current London Metal exchange price is $7.26 US. Remember China is a net importer so they are buying from the world market at a lower price then it cost them in China. Defence Logistics Agency is stockpiling Lithium-Ion Battery Precursors (three materials) Link below. The research paper “Life cycle assessment of high capacity molybdenum disulfide lithiumion battery for electric vehicles” on page six has molybdenum as Precursor requiring over 50kg of molybdenum per battery. I’m not a specialist in chemistry so please correct me if I interpreted the article wrong.https://www.dla.mil/Portals/104/Documents/StrategicMaterials/Reports/NDS%20Report%20Summary_for_Public_Release_FINAL.PDF?ver=2017-05-18-100407-693
So that’s just the juicy part of my economic research into molybdenum. Now for the company part which is Cumo Co (MLY.V) in the interest of full disclosure I have just finished accumulating a large amount of stock in MLY.V under my company name “Elatam Group” Cumo has the largest and lowest cost molybdenum deposit on the planet with a mine life over 100 years.
Cumo has a net cost per unit of molybdenum of $2.76 when you compare that to GMO its producing at $6.26. The reason for the big difference is the amount of silver by-product the Cumo mine has which reduce net cost of the molybdenum. Current stocks on issue143,214,988 which is a nice low number. Will increase to 214,822,482 stocks on issue with the current “Rights” issue and “private placement”.
Share price at $0.08 due to current debt (debentures) of $3 million needing to be paid and company short on funds to pay it. The debt is secured by all the assets of Cumo so if it isn’t paid the company loses all its mines. Their dead line is 15 December 2017. $3 million isn’t allot of money to raise and I’m hopeful after talking to management that this can be raised.
Allot more company info can be found on their website https://cumoco.com/
Lastly consider all the risks associated with small cap stocks. The major risk at the moment is the debt of $3 million but if enough interest is generated it’s a very easily achievable target to raise.
The biggest beneficial points that I liked about the this investment is the Molybdenum market supply demand dynamics which look favourable and the lithium/molybdenum batteries and the interest it has generated from the US government. The below link is another useful link to read. https://science.energy.gov/bes/highlights/2017/bes-2017-06-f/
We all know how lithium has performed and I’m hoping based on my research molybdenum will have a big part to play in the electric car and battery industry. Feel free to ask me any research questions. Regards