Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Molybdenum Mining Stocks? Check with Locals, Natives First

Commodities / Metals & Mining Apr 11, 2007 - 10:51 AM GMT

By: James_Finch

Commodities Institutions and investors are climbing aboard as greater interest emerges in molybdenum. The silvery white metal adds anti-corrosive properties to everything from pipelines and power plants to desalination plants, automotive parts and air pollution systems. Find out if the project has permits before jumping into the moly mania. We interviewed Adanac Molybdenum executive chairman Larry Reaugh about the dozens of junior resource companies, which now proclaim they are part of the Molybdenum Bull Market. His company appears as a potential molybdenum producer on the horizon.


Since the beginning of this year, Reaugh's company has been riding the ‘moly wave.' Institutions and investors are climbing aboard as greater interest emerges in the silvery-white metal, which adds both hardness and anti-corrosive properties to everything from energy pipelines and nuclear power plant condensers to desalination plants, automotive parts and air pollution systems for coal-fired power plants.

We posed five questions to Larry Reaugh to help separate the hype from the reality of the current molybdenum mania.

StockInterview: Of all the molybdenum companies out there, how do you know which are going to become economic?

Larry Reaugh: You can really only tell once the bankable feasibility is done. The bankable really narrows down the resource itself into a reserve and that can change. It's the only thing that can tell you with any assurance that a project can move ahead and make money. You should be able to take it to the bank, and they should finance you to go into production.

StockInterview: Please explain the timeline and the process to move a moly project from the resource stage all the way through the bankable feasibility and permitting stages.

Larry Reaugh: By the time you get to the resource stage, you should already have your baseline study and your environmental permitting started. You should have already made contact with all the various levels of government and stakeholders in the area to hire a qualified engineering firm – one that has impeccable credentials to do the pre-feasibility. And also apply for your mining lease at that time. Once the pre-feasibility is done, that gives you 30 to 40 percent certainty on the project. You take the results from those and then decide to move right into the feasibility of those if it's at all positive. Eventually when you get into the bankable feasibility, then you have another 10 to 20 percent assurance that the project will bear fruit at the end of the day. A bankable feasibility gives you reserves. Once you get reserves, you can actually put a dollar number value to it. That gives you enough of a grounding to it in which to do the detailed mining That includes the mining plans for your piping, your water, your foundation layouts, your site plans. Every Nth degree of construction that's going to take place in that plant has to be put on paper. That's about a 13-month project and will cost you up to C$15 million. So, now you move it through the environmental stage. That can take up to 3.5 years.

StockInterview: Many mining projects around the world get stalled because of bad relationships with the native inhabitants. Please tell us about Adanac's relationship with the First Nation of Canada.

Larry Reaugh: If you don't have a good transparent relationship with the natives and the locals, and you don't include them all the way through, you are not going to have ease of getting your social, economic and environmental permits done. When we got involved up there, the first thing that we did was contact the local band in the area. We met with the consul, basically gave them our plans. They brought in their consultants, and as each problem came up, we worked our way through it. They became a big part of working through to the solution. They know that there's an impact benefits agreement that we will be negotiating over the next couple of months. Socially, this is a big economic boost for everybody in the area. If you can help them to raise their industry awareness in having off-spins from that mine – other industries that they can develop, then you are doing a good job of being a good corporate citizen, not just to the native groups but also to the entire area. If you don't think that way, then you are going to have problems before you get going.

StockInterview: What steps will you have to take to begin production after you get your mining permits?

Larry Reaugh: Once the environmental permits are in, it'll be construction. That will take about 18 months. That will be right from the ground up – from breaking the soil to laying the foundations to pre-stripping the pit to laying down the tailings pond and the waste dump site.

StockInterview: The molybdenum mining market is robust right now. Why should investors consider Adanac as opposed to other moly companies?

Larry Reaugh: If you go to our site, you will see that the bankable feasibility is calling for a three-year payback on a C$450 million investment. We believe that that is obtainable. The project is way ahead of its peers. I don't think there's anybody else that's breaking ground this summer on a project of this size. Here's a company that's trading at a very low market cap, which leaves a very great entry point for a mine that could be producing by the last quarter of 2008 and certainly full production by the first quarter of 2009.

By James Finch
http://www.stockinterview.com

COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED
James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on and on http://www.amazon.com The weekly spot uranium price is posted on the TradeTech website every weekend at http://www.uranium.info


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules