By Leia Michele Toovey- Exclusive to Moly Investing News

Molybdenum has been on a positive trend this year, with shrinking supply and growth in applications extending support.

With a deficit of moly expected over the next few years, exploration activities are on a fast track. If you look at the last three months’ record, activity in this metal has been quite stable.  This is a remarkable achievement considering the fact that market events have really rattled the cages of most metals in this period.  Extend your frame of reference to the last six months and the result is still the same: moly’s price has been on a consistent rise, fuelled by shrinking supply and expanding demand.

Thompson reports ’satisfactory’ Q 2

 Thompson Creek Molybdenum (TSX: TCM) has had a satisfactory Q 2, with output up by 70 per cent.  Of their three mines, Thompson Creek Mine increased output by 10 per cent and Endako by 12 per cent, as compared to the same period in 2007.

Second quarter earnings rose to 60.4 million, 29 per cent higher than the first quarter of the year, and 6.3 per cent higher than the year-on-year period. This year, however, the company has witnessed a sales decline as a result of a build-up of inventory caused by a planned maintenance shutdown of its  Pittsburg facility.  Higher molybdenum prices compensated for the decreased sales volume to give the company higher profits.

Shares of Thompson Creek Molybdenum slipped on this news.  Although the company looks on target in meeting its 2008 production expectations, and profits are up; the increase was lower than anticipated.  On Friday, at mid-morning, the company’s shares were down $0.83 at $13.81 on the Toronto Stock Exchange.

Deal closed 

Vancouver-based International PBX Ventures (CVE:PBX) made its final payment of $750,000 towards the purchase of a 100 per cent interest in the Copaquire property in Northern Chile.  The agreement was inked in on Jan 16, 2004.  The total amount paid for the property is $2.1 million.  So far, the company has invested $8 million in exploration. In October 2007, they released national instrument compliant resource estimate of 183.2 million tonnes 0.046 per cent Mo, 0.107 per cent Cu, and an inferred resource estimate of 212.8 tonnes of 0.045 per cent Mo, 0.097 percent Cu. Completion of the resource estimate on this property is expected by September 2008.

Good news from Haynes International

Haynes International, developer, manufacturer and marketer of high performance alloys, has announced its net revenue for the three-month period ending June 30.  During this time, revenue generated stood at $166.3 million. Commenting on the development, Haynes CEO and President Francis Petro told mediapersons, “I am very pleased with the operating results of the third quarter of fiscal 2008. We continue to improve results, quarter-to-quarter, in a competitive environment. This improvement reflects the marketing and sales efforts to diversify and expand our markets, and the operating improvements gained by our capital upgrade program.”  Looking forward, a capital upgrade program will increase the company’s production capacity with full market growth from the expansion to be realized in late 2009.

Avanti signs mine deal

Vancouver-based Avanti Mining (CNQ:AVMI) has signed a 100 per cent purchase agreement for the Kitsault mine in British Columbia. Avanti is purchasing the mine for $20 million from a subsidiary of ALCOA inc. The deal is expected to close this October. The mine was previously in production between 1967 and 1972, with stockpiled ore treated from 1981 to 1982, till low moly prices led to the site shutting down.  Avanti Mining has already produced a national instrument 43-101 compliant resource estimate of 150 million tonnes of 0.10 per cent Moly.

Questions about this article? Leave a comment below or contact our editorial team at editor@resourceinvestingnews.com.