What was not mentioned are the uses of Molybdenum, it prevalence and what it is associated with in mining. Don't be fooled to think that Molybdenum is the next gold rush.
Molybdenum is commonly used in the production of steel. It is often a byproduct of mining in porphry copper-gold deposits and is quite common. In fact in NSW there are numerous known reserves within existing mines and unmined locations. Mo is often discarded due to the cost of separation process, volitile demand and value.
Don't get me wrong, it is an important industrial metal and has valuable uses, but it aint gold. It can fluctuate in value like no other metal, mainly because of the availablity within existing mines and capacity to extract and sell when the price is right. Oxiana for instance has considered in recent years the extraction of Mo from its Sepon operations, a biproduct of mining that was not considered during mine planning.
It is not unreasonable to expect large quantities of Mo to be dumped onto the market at short notice from a variety of sources, which could seriously affect the spot price!
IMHO trade with caution and make sure you DYOR
GC
WTE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
