The Conversation (0)
Writing for InvestorIntel, Christopher Ecclestone provided an overview of the moly market, noting that while it was once “hot,” it’s “now the mineral equivalent of a leper.”
Writing for InvestorIntel, Christopher Ecclestone provided an overview of the moly market, noting that while it was once “hot,” it’s “now the mineral equivalent of a leper.”
Unfortunately, he’s not optimistic that the situation will change any time soon. Though he believes “an extreme supply crunch” is likely far off in the future, he said that “no-one is betting on that being very soon.”
He concluded:
Moly is a metal that has not even been able to give a glimmer of hope to its followers in recent years. Most metals have staged rallies then flopped back (while maybe making some ratchet –like move upwards from lows). Moly has provided no such solace. The result is that there are no primary Moly wannabe juniors out there. Like confessing to have leprosy, the faster way to clear a room of investors is to say that one is going to pursue a trajectory as a Moly miner. On the larger scale there are some names like General Moly caught in an eternal holding pattern, while Mercator the owner of Mineral Park went bust and Thompson Creek, the one-time champion of the Moly space, is gradually exiting stage left through putting mines on care & maintenance and others reaching the end of their LOM. Freeport has its Climax mine in cold-storage and that might be the first cab off the rank in the event of a Moly turnaround mainly because there no other potential mines even vaguely likely to get into production with either:
- Three years of sustained better prices
- Those better prices being $13 per lb or higher
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