"So, here I sit watching Adanac once again under some selling pressure as investors take profits and once again I sit here forced to think Joe average investor is going a little hard on the plastic baggy and Pam.
What is it I wonder?
Very little paper against it, a huge resource in a metal going through the roof and showing no signs of slowing, healthy financials, cash in the bank, every placement coming in oversubscribed, liquidity, a tremendous audience, write ups by respected analysts and newsletter writers and a 10,000 metre drilling program being complete with just a few holes left to come in from the assay office that will allow for the historical numbers to be stated as a 43-101 compliant proven resource and with a lot of holes having been drilled deeper and showing higher grades the final number should exceed the historical number...how is profit taking happening after a lousy 15% gain?
Do they not realize what Adanac is sitting on?
I think I am on to something with that last, maybe because most are new to molybdenum, they just can't wrap their heads around the resource and what it means.
Therefore I am going to present Adanac again and do so in terms of a gold reserve. We all know what makes for a good gold property and all one has to do is tell you how many proven ounces a gold company has to get a pretty good idea where they are trading.
So let's do the math shall we?
Again, I use the historical numbers of both the BC property and Nevada property and once again reiterate the fact that until both have the work completed to bring them up to 43-101 compliance, the numbers have to remain historical. Of course we know molybdenum does not evaporate, but I do have to remind you of the lack of 43-101 compliance on the properties nonetheless.
Between the two properties we have a historical number of 500 million pounds.
Molybdenum is trading at US$34.00 per pound.
500 million pounds x US$34.00 = US$17 billion
US$17 billion / $US435.00 = 39 million ounces gold equivalent
Yes, you see correctly. If Adanac was a gold property and its resource was reported in terms of gold, they would have a resource of 39 million ounces.
Quite the eye opener eh? Kind of makes this share price and profit taking after 15% gains seem kind of ridiculous doesn't it?
I think so too.
I leave you with a comment from Bob Moriarty at 321Gold:
"The increase in moly prices is going to last far longer than anyone now imagines. No one has opened a primary moly mine in the last 28 years. Moly production as a by-product of copper production is actually going down, so the future for the few primary moly deposits is bright.
Adanac's 500 million pound Atlin property has increased the metal value by $3 billion dollars in the last two weeks. (My note: This was written before the further jump in price of another $2.00)
One day soon, someone who wants a moly deposit is going to pick up the phone and start talking turkey with either or both of these companies. Today's price will seem very cheap."
Continuing to educate on the best and brightest,
Michael Alexander
Accelerated Capital Investments Ltd.
Phone: 519-471-3243
E-mail: alternative@rogers.com |
