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?
While rising Molybdenum prices have helped the revenues of most all molybdenum mining companies, new projects and other miscellaneous costs have hampered first quarter profits. As the results for Q1 come in, which companies have capitalized on rising demand for moly? Also, an update for the merger between Quadra Mining and FNX Mining.
China’s stockpiling of molybdenum, now 30 percent of the world’s total inventory, may be attributable to their nuclear energy build up. Massive amounts of moly are needed for the highly specialized tubing needed for the reactors. These factors, as well as the rapid urbanization of China and India, and the modernization of the two powers, will be the driving influences for moly in the future.
Moly Mines Ltd. secures financing from Chinese Firm, Hanlong Mining, continuing the frenzied rush to finance Molybdenum operations. Also, new developments from earthquake-rattled Chile as International PBX Ventures starts drilling.
A busy week for molybdenum producers as multiple companies such as Quadra Mining and International PBX Ventures release statements about perusing new opportunities for moly.
After the Chinese agreed to fund two Molybdenum companies last week, Thompson Creek Minerals and Antofagasta PLC are looking for financing for new projects to capitalize on surging molybdenum prices.
Projected growth for steel combined with Chinese firms investing in foreign molybdenum producers could provide investors with unique opportunities at a good value.
Quadra Mining Ltd. (TSX:QUA) reported net earnings of $80.5 million or $0.89 per share for the year ended December 31, 2009 compared to $38.6 or $0.61 per share for the year ended December 31, 2008.
Quadra Mining Ltd. (TSX:QUA) reported that on Monday, March 8th 2010 at 10.00am ET (7.00am PST) senior management will report on the Company's financial results and performance for the fourth quarter and year ended December 31st, 2009.
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