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Gold/Mining/Energy : The Molybdenum Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (742)	3/21/2005 7:02:23 PM
From: Bill Jackson	Respond to of 3267

EC, It all depends on the value of the NSR. If you have a 2% NSR and you can buy it for $1 million per % = $2 million. Now if that mine makes $400 million annually for 20 years, it is obvious what to do. Some NSRs have a buyback window(from 2005 to 2008, for example) that closes and then you are stuck with it. Molybdenum shortage is not due to a scarcity of reserves, it is due to a scarcity of capacity. The producers have been there before. If they double production with a mine/mill expansion that take 3-4 years to finish and all the other producers do the same = huge glut in 3-4 years and price craters. So man just sit back and profit from the spot market and fulfill their long term contracts at a lower price. Lucky guys who did not renew their long term contracts get to sell into the spot and make big bucks. Bill