Molybdenum

China Scrambles to Secure Molybdenum Resources

China Scrambles to Secure Molybdenum Resources

The race is on… World leaders are scrambling to gain control of global molybdenum assets on speculation that China will cut exports. China is the world’s largest producer of molybdenum, supplying over a third of global supplies. But growing domestic demand may prompt the Chinese government to restrict exports… This may cause the price of molybdenum to rise significantly in 2011, and lift share prices of primary producers. China moves to secure molybdenum resources China has been a net buyer of molybdenum for the year, importing over 5.5 million pounds of the strategic metal used to harden steel. China produced about 160 million pounds of molybdenum in 2009. This year, analysts expect Chinese molybdenum to increase nearly 20% to 190 million pounds. Despite being the world’s largest supplier, China may be forced to continue importing molybdenum in 2011. The country’s recent economic stimulus package— which focuses on infrastructure — will continue to require a large supply of molybdenum for high-strength steel to be used in bridges, power plants, and pipelines. This will continue to have a significant impact on global molybdenum supplies. And China has already recognized the importance of securing molybdenum resources… Last month, the Chinese Ministry of Land and Resources reported it was planning to set up strategic reserves for 10 metals — including molybdenum and rare earth metals. The Chinese government recently showed its commitment to helping the domestic market secure molybdenum supplies. Just a few months ago, the gov’t accelerated a financing approval for Hanlong Investments, a privately-owned Chinese company, to fund the development of General Moly’s (AMEX: GMO ) Mt. Hope project. General Moly (AMEX: GMO) Hanlong Investments will purchase 25% of General Moly for $80 million and procure a $665 million loan from a Chinese bank. The total funding from the Hanlong transaction is anticipated to fund all remaining capital requirements for Mt. Hope, currently the largest and highest-grade primary molybdenum project in development. Primary producers like General Moly and Thompson Creek Metals (TSX: TCM ) will receive a premium because molybdenum is usually a

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Yamana (NYSE:AUY) Still Struggles to Gain Respect, Traction

Although there have been a lot of positive comments and data presented on the future of Yamana Gold (NYSE:AUY), it continues to struggle to gain respect and traction in a gold investment climate that should result in a much better price movement for the gold miner.Scotia interrupted the attempted party again, downgrading Yamana from “Sector Outperform” to “Sector Perform.” With analysts having

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The Nixon Shock

The Nixon Shock

Have you looked at the market lately? The Dow is pushing 11,000. The S&P 500 has broken out above 1,150 and seems to be going to 1,220. Gold is at $1,346 per ounce, another all-time high. Silver is at prices not seen since the Hunt brothers tried to corner the market back in the 1970s. Oil is threatening to break out of its range… Aluminum, copper, tin, Molybdenum , nickel — all up! The price of cobalt has jumped from $24 to $40 per pound in the last three months. When pigs fly, pork bellies The prices of wheat, coffee, and pork bellies are going parabolic… “What’s going on?” you might ask. Could it be that investors are suddenly jazzed about tin, or think that hot dog sales will boom this Thanksgiving? No, of course not. The answer lies with our own happy Federal Reserve. Brian Sack, a senior official at the New York Fed, said this about quantitative easing in a recent speech: “Balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth bykeeping asset prices higher than they otherwise would be.” Ponzi scheme In other words, the Fed is trying to prop up housing prices and the stock market (i.e. 401ks and other retirement plans) by keeping rates low, printing money, and destroying the value of the dollar. The fact that they admit this isn’t surprising… (It should be. I wish I was shocked, but I’m not.) The U.S. economy has been run like a giant Ponzi scheme since the Asian Currency Contagion of 1998. This was followed by a series of “crisis that will destroy the world economy”: Russian debt default, 9/11, Long Term Capital Management, dot-com bubble, housing collapse… Each one of these crises required the heroes at the Fed to step in and “save us” by printing money and creating the next bubble. This always reminds me of those Salvador Dali posters all the cool kids had in college: At some point, you have to pay the piper. Bills come due, and you can no longer prop up the empty corpse of the economy by adding another buttress. The flaming giraffe of debt will have his say. We wish, dear reader, that someone had the nerve to stand up in 1998 and let those who bet on LTCM take their lumps as a warning to the rest of the capitalist risk-takers. Make no mistake; the bailout of LTCM twelve years ago is directly responsible for the debt markets turning into a free-for-all five years ago. Heck, many of the same people were involved. And why not take risks? If the Fed can bail out Long Term Capital Management, they can bail out AIG. And Wall Street was correct in its assumption. Nothing has changed… No lesson has been learned. The currency war Right …

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Goldcorp (NYSE:GG), Yamana (NYSE:AUX), Barrick (NYSE:ABX), Extorre (TSE:XG) and Argentine Glacier Law

The new glacier law in Argentina, which was approved by the Argentine Senate, and which President Cristina Fernandez has said she will sign, has generated some concern for the mining industry, especially gold miners in the country. Fortunately, most of this is posturing and show, as very little in the way of mining will be affected by the law, either now or in the future. Companies with

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Ivanhoe Australia Raising $211 Million for Osborne, Merlin Acquisitions

Ivanhoe Australia, whose biggest stakeholder is Ivanhoe Mines (NYSE:IVN), will via an institutional placement raise $211 million for acquisitions and expansion.The particular acquisition they’re looking at is the Osborne gold project, and the development side is the Merlin molybdenum project. Part of the capital will also be used to pay down some of the debt Ivanhoe Australia owes to Ivanhoe

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Freeport (NYSE:FCX) Earnings Increase 10 Percent in Second Quarter

Freeport McMoRan Copper & Gold Inc. (NYSE:FCX) enjoyed a 10 percent increase in earnings in the second quarter, as higher copper and gold prices helped them to a strong showing, even though production numbers were down.The miner earned $1.49 a share after excluding one-time items, far above the $1.34 a share analysts had been looking for.Copper prices surged 38 percent higher on average during

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Freeport-McMoRan’s Profit and Revenue Rise, Beating Expectations (FCX)

Freeport-McMoRan’s Profit and Revenue Rise, Beating Expectations (FCX)

Mining giant Freeport-McMoRan Copper & Gold Inc. ( FCX ) on Wednesday posted better-than-expected second quarter earnings results, sending its shares higher in premarket trading. The Phoenix-based company reported second quarter net income of $649 million, or $1.40 per share, compared with $588 million, or $1.38 per share, in the year-ago period. revenue rose 4.9% from last year, to $3.86 billion. On average, Wall Street analysts expected a smaller profit of $1.28 per share, on lower revenue of $3.53 billion. FCX said it expects to sell 3.8 billion pounds of copper, 1.8 million ounces of gold, and 63 million pounds of molybdenum in 2010. Freeport-McMoRan shares jumped $3.43, or +5.3%, in premarket trading Wednesday. The Bottom Line We had removed shares of FCX from our recommended list Sept. 2, 2008, when the stock was trading at $89.32. The company has a 1.87% dividend yield, based on last night’s closing stock price of $64.32.The stock has technical support in the $58-$60 price area. If the shares can firm up, we see overhead resistance around the $71-$73 price levels. We would remain on the sidelines for now. Freeport-McMoRan Copper & Gold Inc. ( FCX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Freeport (NYSE:FCX) Earnings Report Should Reveal Economic Conditions

Although many were looking for Alcoa (NYSE:AA) to give some guidance as to economic conditions, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) will probably be a more accurate measure, although combined with Alcoa’s numbers, could give a snapshot of where the economy really is at, against the numerous assertions and conflicting reports out there. Tomorrow morning Freeport gives its earnings

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Investing in Mexico’s Rising Silver Star

Investing in Mexico’s Rising Silver Star

Last week we discussed why now, more than ever, you should own silver as an important precious metal investment. We talked about price ratios, diminishing global supply, government hoarding, and the recent trend of investors buying the precious metal up like there’s no tomorrow. But now, I want to get more specific. Because while it’s good to know that silver investment demand has gone up 522% since 2007— or that above-ground silver supplies dropped by 83% in the last 2 years — none of this information is going to make you any serious money in the next few days or weeks. However, a unique opportunity just crossed my desk that I think could turn out to be one of my biggest winners of the year. It’s a newly-formed junior silver company that could be sitting on one of the largest silver deposits in Mexico. Here’s the full story… Advertisement The $18 billion black hole Every year, inefficient light bulbs cost businesses and taxpayers $18 billion in energy bills. This has been the case for 130 years… But one micro cap tech company has finally found the solution. In the next few months, with the help of a secretive DoD contract, this $26 million operation… could come to dominate a market worth almost $9 billion/year. Find out the name of the company— and their innovative solution for the lighting…

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BP and the 1979 Ixtoc I Disaster

Filed in copper, dividend, Gold, GOld juniors, lead, Molybdenum, natural-gas, silver by on June 19, 2010 0 Comments

BP thinks you’re stupid. Two years ago, BP said it could handle a spill 10 times worse than what we’re dealing with now. And we believed them. They said 25,000 gallons were leaking into the Gulf… and we believed them. They now say 60,000 gallons are leaking every day…. and we believe them. But with a cracked seabed floor— and a well that could hold 50 million barrels of oil — 60,000 is nothing more than a pipe dream. The spill could actually be worse than 1979’s Ixtoc I disaster — the worst accidental oil spill 50 miles off Mexico’s Gulf Coast, where more than 140 million barrels gushed into the waters (that’s about 30,000 gallons a day) until it was capped 10 months later. (Can you imagine the oil impact if it takes BP 10 months? It’d be the second worst spill in history, following the 1991 Arabian Gulf/Kuwait oil debacle, which wasn’t even an accident. Iraqis dumped 380 million to 520 million gallons on orders… ) BP is nowhere near capping the leak or stopping the oil volcano. They can promise fixes by August… but there’s no guarantee. It’s not as if there’s a “fix” for a cracked seabed floor. Worse, the well could still hold 94% to 97% of its oil 60 days into this crisis. And if the current flow rate continues with that much oil still in place, it’ll take two to four years for the oil to leak out if they can’t stop it. That alone would destroy BP. And yet, investors think everything is okay… …

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Freeport-McMoRan (NYSE:FCX) Ready to Break Out?

Several factors are moving in the right direction for Freeport-McMoRan (NYSE:FCX), and if they line up like they in the way that it looks like they will, Freeport could break out nicely for some time into the future.While the movement of copper prices is the obvious chief indicator for Freeport, being the largest public copper producer in the world, other factors could also enter the picture,

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