Energy Guru Eric Sprott wants more molybdenum
Canadian legendary natural-resource investor Eric Sprott, has molybdenum hot! His management company of the same name is now preparing a molybdenum participation fund that will buy and sell molybdenum. Sprott molybdenum participation companies will also invest in exploration, mining and processing of metal companies.
Sounds familiar? Uranium participation in the company launched in late 2005, the cumulative price of physical uranium as low as 20 US dollars / lb. In 2006, the uranium fund's stock nearly doubled from spot uranium prices.
We interviewed Eric Stroot in October 2004, when he predicted the steep rise of uranium and offered his choice. As usual, Sprott Asset Management entered the uranium market by investing heavily in large-scale investments that were not yet known. Since then, those who are not familiar with the penny stock has begun to have more than 1 billion US dollars of market capitalization. Examples include SXR Uranium One, which recently announced a $ 5 billion merger with UrAsia, a Paladin resource, a deal of three cents, and now capital of about $ 3 billion.
We follow a number of Sprott shares, some of which reached $ 1 / share in 2004, and most recently traded at $ 12 or more, such as energy metals. One thing, the Sprott family's funds hold more than 20 percent of Uranium's shares, such as Energy Metal and Strathmore Mining. In late February, Jim Cramer was on his "Crazy Money" television show.
A big question in the Canadian financial and media last summer was: What was Eric Sprott's next big thing? We believe this will be molybdenum stocks and is reported in late July. We interviewed Sprott Asset Management researcher Maria Smirnov and discussed how investing molybdenum shares could be another way to ride the energy bull.
Although nickel, zinc and uranium prices soared, but in 2006 the price of molybdenum is behind. After 2005, molybdenum prices climbed to a record $ 40, copper producer by-product mining led molybdenum prices rose more than 20 years old.
But this may not be going on for a long time. According to Ken Reser, one of the early molybdenum mining commentators, changes in China's export laws could help molybdenum prices. In our e-mail exchange, Reser firmly believes that molybdenum prices may be higher. He supports Adanac Molybdenum Corp, which hopes to put its large Ruby Creek deposit into production in 2009.
Early Sprott's favorite blue pearl mining company has since become the world's fifth largest primary molybdenum producer, and is the world's largest listed primary molybdenum company. The key word is "self". After Eric Sprott began to support the company, Blue Pearl announced the acquisition of privately held Thompson Creek Metals for $ 575 million. The acquisition will be the small companies into the molybdenum mining spotlight. In 2007, the company plans to produce about 21 million pounds of molybdenum (the total value of Friday's closing price: $ 593 million). This is about 5% of global molybdenum mining!
Another favorite of Sprott, the company hopes to produce by the influx of some of its mining in the first year Cash flow to expand its molybdenum deposit, hoping to build a larger molybdenum ore.
Molybdenum prices may rise again soon, according to Erik Stroth's investment. Of course, his fund investment molybdenum shares will be the case. (We have no relationship with Sprott Asset Management.)
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