Amerigo Resources Ltd. (TSX:ARG) released its results for the first quarter of 2013, noting that it produced 258,301 pounds of molybdenum, a 19-percent increase compared to the year-ago quarter. Its copper production fell by 8 percent, to 12.8 million pounds.
Amerigo Resources Ltd. (TSE:ARG) reports production results for the third quarter of 2010 from Minera Valle Central near Rancagua, Chile.
Peru, the world’s second largest copper producer, is benefiting from billions of dollars of investments from the worlds largest mining companies. The investments may boost copper and molybdenum production that could rival Chile, the world leader in copper production. Also, a new use for moly as a semiconductor may increase demand for the metal in the future.
In 2008, molybdenum cost an average of $29/lb after peaking at $30 in 2007. On a monthly basis, however, molybdenum has sold for less than $10/lb for two months now. Investment bank Dahlman Rose & Co. in New York expects molybdenum to average $12/lb this year.
Commodities have been having a rough ride lately, but Molybdenum’s performance, although not stellar, has not been as bad as many of the other metals. People have been whispering that moly’s current supply/demand picture makes it one of the best metals to invest in.
The biggest news on the molybdenum market this week comes by the way of expansions, discoveries, and new constructions in the industry. This news is good news, as the market has plenty of room for more players.
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