RCH richfield group limited

moly price gets a thumping

  1. 1,057 Posts.

    In line with most other metals the Moly Price got thrashed down to $US11.50 over past 60 days (was $US33).

    Now this has put the knife into a number of projects (along with the credit market meltdown). Thomson Creek's just put its Davidson project in mothballs.

    Anything grading around 0.05% (eg Moly Metals) will be under serious scrutiny given the new slim margine.

    RCH? Lucky they are still in exploration stage and even luckier they have a very high grade material.

    At least the competition is getting wiped out.

    God knows what terms, if any, Moly Metals will have to concede to get its required $650M in funding. Existing shareholders are likely to be really belted by dilution whether that be the issue of shares or more likely I reckon, the terms a JV gets done on. They may well have to give up a sizeable portion of the project to secure a JV partner. Harbinger liquidating doesn't help matters.

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