Mol have a great long term project, but along with every other resource company trying to bring a project to fruition it is not immune. Higher credit costs, lack of demand and falling commoditie prices will have affect.
If you take a look at the 2005 paydirt article on the Moly website Derek fisher refers to the fact that when they listed Molybdenum was $5-$6 pound, And there were 3 properties in NSW that they did not even list in their prospectus and days later the price jumped to $16-$18 and it was at that time projects they thought weren't viable became viable and it was then that they picked up spinifex ridge.
A Full blown US Reccession will affect markets worldwide including the fastest growing economies in that of China and India. Should this eventuate all sectors across the board will be affected Financials and resource companies in particuliar.
Lets put things into context and look at the bigger picture taking into consideration the World Banks GDP figures for 2007.
TOTAL WORLD GDP 60,507,207 M100.00% POP. 6,684M
USA 1. 13,811,200 M 22.83% 305M
EU(24count) 2. 10,367,276 M 17.13% 494M
PR China 3. 7,055,079 M 11.66% 1,321M
Japan 4. 4,283,528 M 7.08% 127M
India 5. 3,092,126 M 5.11% 1,137M
Australia 18. 733,119 M 1.21% 21M
The United states has been the primary concern or the instigator with the Sub prime saga pulling down financial markets worldwide. The United states with a population of aproximately 305M commands 22.83% of the worlds total GDP as a conservative estimate, depending on which source and which bodies numbers you look at IMF /CIA FB etc.
The bottom line is if the united states should fall into a reccession US imports will decline Tremors will be felt worldwide and in particular China, Money markets would suffer and funds will become more expensive and more difficult to secure. The demand for Resources will reduce and stockpiles will build increasing supply and reducing demand.Commoditie prices will fall.
Should these events occur we will see fewer projects seeing the day of light, and only quality projects with all the boxes ticked will survive.
I believe Moly have Interim finance secured and with all probability full project finance contingent upon that. The project is far enough advanced to be well positioned and the current worldwide stockpiles of Molybdenum put us in a unique position.
Long Term holder but not 100% confident maybe 99.9%
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