Australia’s new “Super Profit” tax on mining companies may scare off investment and hurt the profitability of mining operations, say analysts. However, economists and government officials disagree. After billions of dollars worth of investments into molybdenum operations in Australia, how will this proposed tax affect the mining industry?
Thompson Creek Metals Company Inc., one of the world’s leading publicly traded, pure molybdenum producers, has scheduled a conference call for analysts and investors to discuss its second-quarter 2009 financial results on Friday, August 7, 2009 at 8:30 a.m. For full story, click here
Chinese imports of molybdenum concentrate and molybdenum oxide nearly doubled from January to February as overseas sellers stepped up competition with Chinese producers. This did little, although, to correct prices.
Government spending will spark a recovery in steel demand towards the end of the year; but its mark on the molybdenum market will be limited. Demand for molybdenum in China likely will rise 6 percent in 2009, then slip to 52,800 tonnes in 2010 before growing again in 2011.
Investors must know that patient money right now is marking time in molybdenum and possibly other specialty elements and novel life-science compounds that might improve our current treatments for dementia, heart disease, influenza and cancer. For full story, click here
The steel sector has been deeply impacted by the global economic climate; with an approximate 50% decline in production. Moly, as an important alloy, is following suit.
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.
The first week of 2009 was a sleepy one for molybdenum with thin trading volume as many customers remained on holidays. Activity in China was by far the slowest, with Chinese molybdenum oxide and ferromolybdenum producers halting spot molybdenum offers to overseas customers.
Molybdenum, a seemingly invincible metal this year finally took a hit in the fall as economic malaise spread. The alloying metal is down 65% this year, and this decline was seemingly overnight.
The sudden and violent drop in molybdenum prices from $26 to $12 has left investors in shock. George Topping, an analyst at Blackmont Capital said: Looking at market reports, we’re hearing of trades in single digits. It’s an amazing decline. For full story, click here
Get our independent commentary on moly trends and companies delivered to your inbox.
