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Gold/Mining/Energy : The Molybdenum Discussion Board
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To: jimsioi who wrote (2119)7/28/2006 2:56:49 PM
From: jackjc  Read Replies (1) of 3267
 
jims mkt price would not work for AUA, they needed a price
high enough and long enough to recover the capex costs and
interest costs.

Aparently, as I expected, nobody is confident of the moly price
to guarantee that even for the short years required.

And the supply/demand is so closely balanced that adding
the AUA production would tip it into oversupply and crash the price.
Or so the industry people believe.

The PD plan on restarting Climax, with talk of 'doing it right'
and spending $250M and 3 yrs to get going, is a swell way to
keep everyone out as it would take that long to build a new
mine at just time to get snookered. PD can then keep earning
the gravy without competition.

A few million lbs is the balance. How can you expect an
offtake agreement for a 20-30M lb producer at this time.

ROK is OK, and the other smalls, they will not hurt supply.
And don't need huge capex, they can finance ok.
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