Yes Evision. Since u r getting defensive about it. It is fair to say that Mo prices will recover. Production cuts being announced all over the place particularly those mines that have Mo as a byproduct. Expansion plans and new projects also being deferred since most have grades which are marginally economic like that of MOL. So, it is fair to say that the Mo price will recover somewhat. I doubt $30/lb any time in the near future but what I have been reading suggests that $15 to $20/lb is realistic in 2010 (which I agree with). Also, Thompson Creek is on the lookout for moly acquisition projects and MOL amongst others have been mentioned as a suitor. Furthermore, a 40% drop in IO prices is being mentioned recently which could boost global steel production and hence improving the demand fro moly. However, end of the day to raise several hundred million of dollars for a project which in TODAY'S economic conditions is marginal is going to be very very tough. Also, the iron ore doesnt count for anything as far as im concerned. How much have they got? When are they going to extract it? What are the extraction/operating costs? This is an unknown at this stage and does not add enough value to the current situation at MOL. If they cant reaise the money for the moly than IO isnt going to happen. Best shot atm is to survive until the economic/financial situation improves which would mean deferring the project. Alternatively Thompson Creek comes in with an offer which I doubt. So, in conclusion, too risky. But as you said initially let every investor/potential investor make their own decision by doing their own research.
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