WATCH OUT FOR MOLYBDENUM Molybdenum prices recently dipped at around $14 a pound at 08-08-2022, while we are now trading at +/- $16. My mid-term target lies between $20 and 22 a pound, while in the long term we can see prices above $30 a pound in my opinion.
Molybdenum is a very underappreciated mineral, keep in mind there are only around 76 mines globally that produce moly and 36 are inside of China, with China that produce over 40% of the global output. Between 70% and 80% are copper mines producing moly as a byproduct.
Outside of China there are only 2 pure play moly plays and they are both operated by Freeport-Mcmoran. This means the main output for moly is copper production, so output and prices can work counterintuitive.
Molybdenum is an enabler to lower our carbon footprint, molybdenum has numerous applications already, for instance wind turbines; one megawatt of output requires over 130 kilograms of moly, while we also need to watch the battery space there are indications that moly is going to be widely used in the next generation of batteries.
Starcore owns a well defined molybdenum resource here are the highlights:
El Creston
1. Over 300 million pounds of Molybdenum in the measured and indicated category
2. 48 kilometers of drillholes ( well defined resource)
3. Copper porphry at depth potential
4. A net present value of $561.0 million dollar in 2010
5. Once aquired for over $194 million dollars
6. Exploration for Gold and Silver on the property while we speak