I agree that the pre-feas looks exceptionally good, but possibly the large capital requirement is keeping people on the sidelines. Unfortunately there is nothing in the document released yesterday that gives an idea of the timing of the capital requirements, if it is all required up front it is a big chunk of money. Having Andrew Forrest as Chairman gives me a bit of confidence in this regard, if there is one thing he is good at it is financing projects.
I guess the other risk is the possibility of a collapse in the moly price, this is always an outside possibility but in today's market it is fairly unlikely. The pre-feas was done using a moly price half the current spot price.
The demand for moly is increasing at a reasonably rapid rate and I don't think this is going to slow down soon. The U.S. is mandating lower sulphur content in its fuels, and if the oil price stays high, the processing of high sulfur crudes, the liquefaction of coal and the processing of the Athabasca tar sands are going to require substantial amounts of moly catalysts.
This stock is definitely undervalued at the moment, but moly is too much of an unknown for most investors. Once it gets a bit more exposure it should fly.
MOL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
