By Dorothy Kosich
Antofagasta Mining reported group copper production increased 11.5% in the first nine months of this year, as molybdenum output jumped 30.1%. Read more
By Allen Sykora
A slump in molybdenum prices is likely to act as a “re-entry point” for market participants, said the New York-based consultancy CPM Group in its 2012 Molybdenum Market Outlook released this week.
Continued economic uncertainty in major markets has led to risk-adverse buying patterns and tight lending conditions, CPM Group said in a 420-page study that includes supply, demand and price trends, including projections for the next decade. In August, molybdenum averaged $11.10 a pound. This was the lowest level since November 2009. Read more
By Dorothy Kosich
BHP Billiton is considering selling its Pinto Valley copper mine near the Miami area of Gila County, Arizona, the Financial Times has reported.
“People familiar with the matter said that BHP was working with advisers to consider a sale of Pinto Valley,” said the FT.
By Matt Craze and Nathan Gill
Codelco, the largest copper producer, is negotiating access to a “world-class” deposit in Ecuador, paving the way for the state-owned company’s expansion outside of Chile, according to an industry group.
The Junin deposit in northern Ecuador contains enough copper and molybdenum to rival the biggest mines in Chile and Peru, which include Anglo American Plc (AAL) Read more
By John Shmuel
Scotia Capital cut its stock price target for molybdenum miner Thompson Creek Metals Company Inc. this week, citing a wall slough at one of its mines and ore grade issues at another.
Thomson Creek announced in May that it suffered a wall slough, or slippage, at its mine in Idaho. Scotia analyst Tom Meyer said that he now expects the slippage to impact the company’s molybdenum production by 1.6-million pounds, as well as lead to higher cash costs. Read more
By Kip Keen
Copper Fox Metals (TSX: CUU) added some significant heft to resources at its nearly two billion tonne Schaft Creek project, a copper-gold-molybdenum porphyry deposit in BC.
Tonnage-wise, Copper Fox increased measured and indicated resources by 23 percent Read more
Exclusive to resourceINTELLIGENCE
Copper, alongside most other base metals, put up a lackluster performance in 2011 with the red metal ending the year down 21% at $7600 per tonne; however, many analysts are anticipating a recovery in the base metals complex, including copper, in 2012.
BRITISH COLUMBIA – Avanti Mining of Vancouver has signed a mandate letter with five lenders for up to $640 million to be used to develop the Kitsault molybdenum mine 140 km northeast of Prince Rupert. The key terms are $560 million senior debt for a term of 12 years plus $80 million for contingency (if needed) with a term of eight years.
The mandate letter represents preliminary approval, but each of the lenders will still practice due diligence, final credit approval and negotiation and execution of a loan agreement under Ontario law. Read more
And POW, just like that everything seems changed for Avanti Mining. The company announced today that it has entered into a mandate letter with five lenders for up to $640 million of project financing to develop the Kitsault molybdenum mine. Read more
By Soraya Permatasari
Ivanhoe Australia Ltd. (IVA), a unit of billionaire Robert Friedland’s Ivanhoe Mines Ltd., will defer a copper development in Queensland to focus on other projects including the Merlin molybdenum deposit in the state.
The outcome of a pre-feasibility study on the Mount Dore copper cathode project showed further analysis is required, while the estimated capital cost for the project has increased, Ivanhoe Australia said today in a statement. Ivanhoe Mines owns the $6 billion Oyu Tolgoi copper and gold mine in Mongolia. Read more
Nithi Mountain Project Neighbors Massive Endako Mine with Similar Grade and Size Read more
Could Leeward Capital Corp (TSX.V:LWC) be the next major player in the moly space? The geographical proximity of its Nithi Mountain Moly property to Endako Mine, Canada’s largest capacity primary molybdenum mine in central British Columbia, has turned everyone’s attention to this Canadian junior mining exploration company. Endako’s current production is around 27,000 tonnes per day at an average of 0.05% Mo.
“All’s well that ends well,” is one Shakespearean quote that suits Moly Mines (MOL in ASX and TSX) just fine. Despite some hiccups in completing the financing for the construction of its moly mine early this year, the company’s Spinifex Ridge Molybdenum/Copper Project in Western Australia is expected to give the company its first molybdenum production by Q1/2013 as planned. Read more
We see companies such as Avanti Mining Inc (TSX-V: AVT) becoming of growing interest for investors as the world’s biggest producer of molybdenum, China, begins to regulate supply. In 2007, China imposed export quotas for molybdenum and has banned foreign investments into its moly mining sector. Read more
To quote CIBC’s Institutional Equity Research on Metals & Minerals released in September 2010, “China simply is not blessed with domestic high-quality copper resources.” For this reason, the firm named copper as its favourite metal. After analyzing a group of “some of the best junior Americas-focused copper names” currently listed on the TSX, the report ranked International PBX (TSX-V: PBX) Ventures number 17 out of the 25 juniors. Read more
www.internationalpbx.com • 604.681.7748
President & CEO
International PBX (TSXV: PBX) released a scoping study in 2009 that revealed positive economics for its Copaquire copper-moly project in Chile. At the time, the project looked more like a moly-copper project than a copper-moly project because the economics weighed so heavily in favour of the molybdenum. Now with drill results outside the limits of the deposit that weigh heavily in favour of copper, company President and CEO George Sookochoff believes the next scoping study will reveal a different story – a copper story with molybdenum credits great enough to nullify operating costs.
www.molymines.com • 618.9429.3300
Dr Derek Fisher
Moly Mines (TSX: MOL), developer of the Spinifex Ridge Molybdenum/Copper Project in Western Australia, is on track to becoming the world’s newest producer of molybdenum. While the overall progress toward completing the financing for the mine’s construction has been slower than it hoped, Moly Mines Managing Director and CEO Derek Fisher is confident the company will meet its goal of starting production by early 2013. The mine’s target production is 10 million tonnes per annum, which will produce on average 11 million lbs of molybdenum in concentrate and 13.5 million lbs of copper in concentrate per annum for the first 10 years. Dr Fisher discusses Moly Mines’ first-mover advantage. Read more
www.avantimining.com • 877.249.0640
Chief Financial Officer
Avanti Mining Inc (TSXV: AVT) is developing its core asset, the Kitsault molybdenum (Mo) project, located near coastal British Columbia, 140 km north of Prince Rupert. As a former producing mine, the Kitsault project enjoys an existing infrastructure that reduces the capital cost needed to develop the mine, and a strip ratio of rocks to ore of less than 1:1. The final feasibility study for the property, prepared by AMEC, has increased the project’s net present value (NPV) from the pre-feasibility study by 44%. Results of the final study announced on December 20, 2010 reported an after-tax NPV, at an 8% discount rate, of US$794 million and an IRR of nearly 27%, assuming a base case average molybdenum price of $16.76/lb. Initial capital costs were estimated at US$795 million, with an expected payback period of 2.6 years. Read more
Mercator Minerals (ML.TO) said on Wednesday it had produced a record amount of molybdenum in December and that it had “substantially increased” its full- year production of the metal at its Mineral Park mine.
The mine, located in Arizona, produced 4.3 million pounds of molybdenum in 2010, with production of 1.5 million pounds in the fourth quarter. Read more
China Molybdenum Co., the nation’s second-biggest producer, agreed to buy exploration rights for a mine in Xinjiang province for 1.04 billion yuan ($157 million).
The rights will be transferred from the company’s No. 2 Geological Institution unit, according to a statement to the Hong Kong exchange. The company can explore an area of 16.77 square kilometers (4,144 acres) around a mine in East Gobi, Hami, the Luoyang, Henan province-based company said. Read more