| From: pstad60 | 1/5/2023 1:28:31 PM | | | | | | Excellent source of information regarding the molybdenum market :
imoa.info
Be sure to check out the International Molybdenum Association website's Media Centre for blogs,
news updates, yearly reviews and videos on moly.
Current molybdenum prices are at 15 year highs :
1 Month contract @ US$32.25 / lb
2 through 15 month contracts posted at @ US$31.65
lme.com
.
Stuhini released an updated mineral resource estimate in early 2022 :
stuhini.com
Operating costs were estimated to be
- Mo price used for the resource pit was US$15/lb Mo.
- Estimated operating costs used in the MRE (in US$) were $2.00/tonne for mining,
$1.00/tonne for G&A, $5.00/tonne for processing and a roasting charge of $1.77/kilogram (“kg”)
of Mo. Metallurgical recoveries of 92% were utilized in the determination of cut-off grades for
the open-pit resource.
- The resource is reported at a cutoff of 0.02% Mo. Cut-off calculations were based on
metallurgical recoveries, operating costs for mining and processing, and metal prices
described above.
The average resource grade of .00053% is approximately 1.16 pound of moly per tonne.
.
For comparison:
Greenland Resources issued a Feasibility Study for their Malmbjerg moly desposit in
Greenland in February 2022 .
greenlandresources.ca
CAPEX estimates for the Malmbjerge moly deposit starts on page 37 of the above referenced
Feasibility Study.
Average moly price used US$18.00 / lb
Life of Mine operating costs estimated at US$12.42 / tonne
CAPEX for mill, tailings and processing facilities is estimated at US$820 million with additional
sustaining CAPEX costs of US$218 million .... for a total of $1.038 Billion
.
Assuming that the remoteness of the Malmbjerg moly deposit would be a little more expensive from
a CAPEX and operational viewpoints due to the shipping costs and lack of any infrastructure in the
area of the proposed operations.
On the other hand, Ruby Creek is road accessible, and an air strip is already located in the nearby
town of Atlin. Hook up to the power grid would require maybe 10 -15 km of power lines run from
the established electric supply.
At present moly prices and exchange rate, the in ground value of the pit constrained resource estimate
for the Ruby Creek moly deposit :
US$31.65 X $1.355 exchange rate X 477 million lb = C$20,456,502,750
Any moly price over US$25.00 / lb makes the Ruby Creek moly deposit exceptionally economic.
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| From: pstad60 | 1/13/2023 10:19:39 PM | | | | | | Stuhini Exploration Ltd. Closes Second Tranche of Private Placement
VANCOUVER, BC, Jan. 13, 2023 /CNW/ - Stuhini Exploration Ltd. (the "Company" or "Stuhini") (TSXV: STU) (OTCPK: STXPF) is pleased to announce that it has closed the second tranche of its non-brokered private placement (the "Private Placement") previously announced on December 6, 2022 and upsized on December 15, 2022 for gross proceeds of the second tranche to the Company of $474,218. The total aggregate gross proceeds raised under the first and second tranches of the Private Placement is $1,380,000.
Under the second tranche of the Private Placement, the Company has issued a total of 2,061,817 units of the Company ("Units") at a price of $0.23 per Unit. Each Unit consists of one common share (each a "Common Share") of the Company and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant is exercisable into one Common Share at a price of $0.35 per Common Share until January 13, 2025.
The net proceeds of the Private Placement will be used: (i) to fund the Company's exploration programs, including its four newly acquired mineral properties in south east Arizona; (ii) to fund the $300,000 cash option payment due December 31, 2022 (paid) under the option agreement pursuant to which the Company was granted a right to acquire a 100% interest in its Ruby Creek Property; and (iii) for general, corporate and administrative expenses.
In connection with the closing of the second tranche of the Private Placement, the Company paid finders' fees in cash totaling $9,225.76 to Canaccord Genuity Corp., PI Financial Corp. and Red Cloud Securities Inc. (collectively, the "Finders"), representing 8% of the gross proceeds from the sale of Units placed by the Finders, and issued to the Finders a total of 40,112 non-transferable finder's warrants ("Finder's Warrants"), representing 8% of the Units placed by such Finders. Each Finder's Warrant entitles the holder thereof to acquire one Common Share at a price of $0.35 per Common Share until January 13, 2025.
An insider of the Company purchased or acquired direction and control over a total of 87,000 Units under the second tranche of the Private Placement. Such participation is considered to be a "related party transaction" within the meaning of TSX Venture Exchange ("TSXV") Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61–101") adopted in the Policy. The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61–101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 in respect of related party participation in the first tranche of the Private Placement as neither the fair market value (as determined under MI 61–101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves related parties, exceeds 25% of the Company's market capitalization (as determined under MI 61–101).
All securities issued pursuant to the second tranche of the Private Placement are subject to a hold period of four months and one day expiring on May 14, 2023. The Private Placement is subject to final approval of the TSXV.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties in western Canada and southwestern USA. The Company's portfolio of exploration properties includes: its flagship, the Ruby Creek Property located approximately 20 km east of Atlin, British Columbia; the Que Project located approximately 70 km north of Johnson's Crossing in the Yukon; the South Thompson Project located approximately 35 km northwest of Grand Rapids, Manitoba; the Big Ledge Property located approximately 57 km south of Revelstoke, British Columbia; and its new portfolio of 4 properties in southeast Arizona.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward–looking statements concern, without limitation, the intended use of proceeds of the Private Placement. Such forward–looking statements or information are based on a number of assumptions, any of which may prove to be incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets; timing and amount of capital expenditures; favorable weather conditions including but not limited to snow, rainfall and forest fires, and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward–looking statements as a result of risk factors including, but not limited to: the availability of funds; the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; and general market and industry conditions. Forward–looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Stuhini Exploration Ltd.
For further information:
David O'Brien, President & Chief Executive Officer,
Stuhini Exploration Ltd.,
Email: dobrien@stuhini.com,
Phone: (604) 835-4019,
Web: www.stuhini.com
Source : newswire.ca
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| From: pstad60 | 1/15/2023 11:15:01 AM | | | | | | MoS2 grade conversion to Mo grade
Have recently come across an interesting fact regarding companies that have reported their moly
deposit in MoS2 (molybdenite) as opposed to molybdenum (Mo).
Stuhini has reported their molybdenum resource in molybdenum ( Mo )
Belwo are a couple of examples of companies reporting in molybdenite (MoS2)
In Greenland Resources March 2022 Feasibility Study has reported their Malmbjerge moly
deposit in MoS2.
greenlandresources.ca
See Table 1.3 Sensitivity of the MRE to Cut-off Grade (Base Case Highlighted) on Page 1-9
The same reporting method of using molybdenite occurs in the CuMo Project’s May 2020
Preliminary Economic Analysis which is owned by American CuMo Mining.
cumoco.com
There is a conversion factor in the American CuMo PEA that is referred to for obtaining the
equivalent value of molybdenum (Mo) instead of molybdenite (MoS2)
See 10.6 Metal Equivalent Calculations on Page 62, and also refer to the notes under the tables
on Page 61.
“ ….Note: The convention for the CuMo project has been to measure percent elemental
molybdenum (%Mo) in assays and to calculate %MoS2 by multiplying %Mo by 1.6681 …. “
“….Note: that since the convention on the CuMo project has been to work with %MoS2 for
resource estimation, in the foregoing equivalency formulae, %MoS2 is converted back to %Mo
by dividing by 1.6681. %Mo is then converted to %MoO3 by multiplying by 1.5. Also, the
%MoS2 Equiv values would be 1.6681 times greater than %Mo Equiv…..”
Seeing that Greenland Resources share price has also been rising significantly over the
past few months, let’s use the Greenland Resources mineral resource estimate for their
Malmbjerge Project for comparison to Ruby Creek applying the conversion factor:
Greenland Resources trading at $1.18 currently sports a market cap of C$122 million,
Stuhini's market cap at $0.48 share price is about $18.5 million.
Greenland Resources uses a 0.08 MoS2 cut off grade which is equivalent to (0.08 / 1.6681 = 0.048% Mo)
Greenland Reasources average grade of 0.18% MoS2 / 1.6681 = 0.11% Mo average grade
Conversely:
Stuhini’s Ruby Creek cut off grade of 0.02% X 1.6681 is equivalent to 0.0333% MoS2 cut off
Stuhini’s Ruby Creek 0.053% average grade is equivalent to 0.053 X 1.6681 = 0.0884% MoS2
A more apples to apples comparison after the conversion factor sees Malmbjerg with a
0.11% average Mo grade with a 0.048% Mo cut off grade, compared to Ruby Creeks reported
0.053% average Mo grade with a 0.02% cut off.
.
If we refer to Stuhini’s Mineral Resource Estimate chart and look at the cut off grades of 0.045%
and 0.050%, the average Mo grade would be 0.072 to 0.077 and there would be somewhere on
the upper side between 272,762 lbs to 304,656 lbs of moly in comparison to Greenland’s reported
661 million lbs using a 0.08 % MoS2 cut off grade.
Malmbjerg, after the conversion factor, is a little more than twice the grade and size in resource
than Ruby Creek, with roughly 55% more tonneage at this level compared to Ruby Creek.
Recall that some of the best drill results by the previous operator at Ruby Creek, Adanac Moly,
reported some very high grade results from their final drilling that remain outside the pit
constrained resource reported by Stuhini in the 2022 updated Mineral Resource Estimate .
For example, Hole AD-417 reported 0.23% moly over the final 45 meters.
Chart of Ruby Creek Mineral Resource Estimate.
However, due to Malmbjerge's remoteness, I would suspect that the road accessible Ruby Creek
moly deposit will be less expensive from both CAPEX and operations in comparison.
Greenland Resource (MOLY) issued a Feasibility Study on their Malmbjerge pure moly deposit
in Greenland back in early 2022. That study provided a US$820 million price tag for a processing
plant and tailings infrastructure with an additional US$218 million sustaining capex cost for a total
of US$1.038 Billion.
In their Feasibility Study there are a few infrastructure expenses that shouldn't be required for any
mill development at Stuhini's Ruby Creek project.
No airport strip to construct for a mine support at Ruby Creek, ....there is already an airfield in
Atlin B.C .... whereas Malmbjerge is 33 km from the nearest airstip and 185 km from the nearest
town. "The nearest sources of logistical support are in Iceland, and currently supplies must either
be shipped or flown to Mestersvig and then airlifted by helicopter to the site." (Page 1-4)
Malmbjerge will require a 26 km RopeCon Conveyor system to trransport ore from the mine site
to the mill. Malmbjerge will also require a port site facillity to be constructed for transportation of
supplies, container storage, etc, and a road access construction will also be required.
The Ruby Creek moly desposit has easy road access from the town of Atlin 14 km away and Atlin
is about 90 km south of the TransAlaskan Hiway which runs through southern Yukon. The hiway
south to Atlin is paved. Whitehorse, Yukon is about a 1 hour 45 minute drive from Atlin B.C .
The Ruby Creek deposit is also 275 km by road from the sea port of Skgaway, Alaska.
.
Based on the above data, Stuhini's market cap should be at least 1/2 of Greenland Resources
currently at $122 million...... roughly $61 million ..... equating to a share price of $1.58 for Stuhini .
.
Just a little more informations ....
Another somewhat apples to apples comparison of a molybdenum resource is the Kitsault deposit
also in northwestern B.C held by New Moly Corp, who will most likely be listing some time in 2023.
The overall grade is measured in Mo but it also has a silver component. Kitsault is already reported
in molybdenum grades, as opposed to molybdenite
paidpromotionalmessages.ca
“….. The report assumed an average annual production of 23.4 million pounds of molybdenum for
a 16 year mine life at an operating cost of $4.76/lb, with the first five years averaging 29.6 million
pounds per year.
The feasibility study also indicated a boost to the project's mineral resources, now estimated to
contain Measured and Indicated resources totaling 298.8 million tonnes grading 0.072% molybdenum
and 4.20 g/t Ag containing 472.5 million pounds of Mo and 40.3 million ounces of Ag, at a cut-off of 0.021%.
This represents a 9.7% increase of contained molybdenum and an 18% increase of contained
silver over the company's prior estimate for measured plus indicated mineral resources, Avanti
said.
In addition, the Inferred category now totals 157.1 million tonnes grading 0.050% Mo and
3.65 g/t Ag containing 172.2 million pounds of molybdenum and 18.4 million ounces of silver,
an increase of 330% of contained molybdenum and 360% of contained silver from the pre-feasibility
study results.
The Kitsault property, which is located about 140 km north of Prince Rupert, includes three
known molybdenum deposits: Kitsault, Bell Moly, and Roundy Creek….. “
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| From: pstad60 | 1/19/2023 10:21:10 AM | | | | | | Molybdenum price in Europe hits record high
Staff Writer | January 18, 2023 | 11:48 am Intelligence Markets Europe Copper Molybdenum
Moly market is red hot right now. Stock Image.
.
The copper market took a breather on Wednesday after eight straight days of gains, but not before
touching a fresh six month high of $4.39 a pound ($9,680 a tonne) in early trade, bringing its gains
YTD to 12%.
Copper stocks shot out of the gate in 2023 on optimism over a post-covid recovery in China,
which consumes more than half the world’s copper.
Copper producers’ margins are also buoyed by a surge in the price of molybdenum, often produced
as a byproduct of porphyry copper mines. Global moly production of 300,000 tonnes per year is
primarily destined for the steel industry.
Argus reports that European prices for moly are now at the highest levels since the company launched
its in-warehouse Rotterdam assessment in 2019 as supply from China slows. China produces over
40% of the world’s moly. Chinese ferro-molybdenum hit 15-year highs recently.
“There is zero availability on the ground and some people actually flew some material from China,”
a trader in Europe told Argus.
“Global molybdenum consumption is expected to continue increasing over the next decade as demand
for molybdenum-containing steels grows. But production has been squeezed by lower molybdenum
content in mined ores seams and a lack of new molybdenum projects to meet demand,” according to
Argus analysis.
China’s grip on the market is unlikely to relax any time soon. Zijin Mining (SHA:601899, HKG:2899),
which at around 500,000 tonnes per annum is the world’s ninth-largest copper producer, last year
acquired the world’s largest primary molybdenum-only mine with annual output of 27,200 tonnes
per year.
In Canada, Stuhini Exploration (TSX-V: STU) is advancing the Ruby Creek molybdenum project in
the far north of British Columbia. According to the company’s March 2022 resource estimates
Ruby Creek contains just over 196,000 tonnes of moly alongside the property’s gold and silver ore.
.
Source: mining.com
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| From: pstad60 | 1/19/2023 10:36:04 AM | | | | | | EU Mo metal hits fresh highs on supply constraints
Published date: 11 January 2023
European prices for molybdenum ingot have climbed to their highest level since Argus launched
the assessment in 2019, as firm demand in China compounds existing supply tightness.
Argus' assessment for minimum 99.8pc molybdenum ingot jumped to $75-80/kg in-warehouse
Rotterdam yesterday, up from $65-70/kg late last week.
"For moly ingot, the supply of raw materials is too tight; demand in China is very strong, and it
was especially firm in December," a Chinese supplier said. "Consumers in Europe need material
and [for them] to find these price levels after the Christmas break is a concern."
"One of the biggest producers of moly oxide is not signing long-term for converters with Asia,
they want to secure material with Europe and the US, and so they ask for a premium in Asia,
" the supplier said. "Asian buyers do not want to pay a premium, so they didn't sign. That is
why the spot market is so tight."
While there are some stocks of molybdenum oxide and ferro-molybdenum in Europe — as these
are more liquid markets that garner more interest from traders — inventories of moly ingot in
European warehouses remain critically low. The supply shortage emerged in 2022 with
downstream consumers reporting less material available from China.
"There is zero availability on the ground and some people actually flew some material from China,"
a trader in Europe said.
Some traders tested the water this week and were offered material within a range of $78-80.50/t
for February shipment but there was still some resistance to higher offers.
"I am not going to take a position when prices are at an all-time high," the trader said.
Other sources are awaiting material that is on the water and en route already, and they are avoiding
taking any risks compounding shipping delays or reneges, they told Argus.
Both traders and end-consumers are also monitoring developments in the molybdenum complex
looking for price direction. After severe increases, prices for oxide and FeMo softened yesterday
in Europe.
European molybdenum oxide prices dropped to $31-31.60/lb duty unpaid Rotterdam from the
5 January assessment of $32.20-32.40/lb following lower prices in South Korea and lower bids
from buyers. However, availability in Europe remains tight despite slower buying interest at higher
levels.
Ferro-molybdenum prices fell to $71.15-72/kg duty paid Rotterdam, down from the 5 January
assessment of $73-74.50/kg in response to some profit taking from traders.
Meanwhile, Chinese ferro-molybdenum prices are expected to take a pause in the coming week
after hitting a 15-year high because of softening buying interest from steel mills and a slowdown
in logistics services ahead of the 21-27 January lunar new year holiday.
But market participants noted that strong Chinese demand and a narrow spread between oxide
and the alloy in Europe could curb any falls in the near term.
Global molybdenum consumption is expected to continue increasing over the next decade as
demand for molybdenum-containing steels grows. But production has been squeezed by
lower molybdenum content in mined ores seams and a lack of new molybdenum projects to
meet demand.
By Cristina Belda
Source: argusmedia.com
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| From: pstad60 | 1/26/2023 9:19:22 PM | | | | | | Molybdenum Prices Strengthening Again
Futures contract prices have rebounded to 15 year highs after pulling back to US$29.50/lb
earlier last week.
lme.com
Current 1 month contract : US$31.66 / lb
2 to 15 month contracts : US$32.94/ lb
Back over C$20 billion in ground value for Stuhini's Ruby Creek pit constrained 477 million lb
pure moly resource. If Stuhini sold the deposit for only 1% of the inground value it would be over
$200 million,. If all warrants were fully exercised, there would be approx 43.8 million Stuhini
shares outstanding, equating to C$4.56 per share in value at current moly price.
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| From: pstad60 | 1/31/2023 11:53:23 AM | | | | | | Stuhini Exploration about more than just molybdenum
With the Ruby Creek moly deposit being their flagship asset, keep an eye on the molybdenum
futures contract prices continuing to move higher.
lme.com
Current 1 month contract : US$31.93 / lb
2 to 15 month contracts : US$33.67/ lb
US$33.67 X 477 million lbs = US$16,060,590,000 in ground value
or
US$33.67 X $1.34 exchange rate X 477 million lbs = C$21,521,190,600
At the current moly quote, just over C$215 billion in ground value for Stuhini's Ruby Creek "pit
constrained" 477 million lb moly resource
If Stuhini sold the deposit for only 1% of the inground value it would be roughly $215 million.
If all warrants were fully exercised there would be approx 43.8 million Stuhini shares outstanding
..... roughly C$4.90 per share in value at current moly price.
.
If this were a gold deposit it would be equivalent to 8.3 million oz of gold:
US$16,060,590,000 / US$1920 / oz = 8,364,900 oz au deposit
If this were a silver deposit, it would be equivalent to almost 680 million oz of silver.
US$16,060,590,000 / US$23.65 / oz = 679,094,714 oz silver
.
Stuhini Exploration is absurdly under priced for the underlying asset value of its known
molybdenum resource. The moly deposit is in all likelihood much larger.
.
When Adanac Molybdenum Corp controlled this property, they had a market cap in excess
of C$300 million when moly prices were last at these levels in 2007-08.
.
By comparison Stuhini's market cap is only C$18 million.
.
The Ruby Creek moly deposit is very advanced. Adanac Moly Corp produced a Feasibility
Study in 2007, and subsequently obtained an $800 million credit facility to begin development
of a processing plant at Ruby Creek, just prior to the credit crisis in 2009. Moly prices collapsed,
placing Adanac into creditor protection and eventual bankruptcy. One of the co-founders of
Stuhini picked up the Ruby Creek Project and vended the property into Stuhini in 2019.
.
Stuhini is not just a moly play, The Ruby Creek Project also hosts prospects for gold and silver
as well. The company also has another gold prospect, the Que project in southern Yukon, a zinc
play at their Big Ledge Project near Revelstoke B.C, a nickel prospect in the South Thompson
Nickel Belt of Manitoba, and some recently added gold, copper/gold prospects in Arizona.
The company has previously reported some extrememly high grade silver and gold samples
at other locations on their Ruby Creek project.
STUHINI EXPANDS ADERA ZONE TARGET AND SAMPLES UP TO 5681 G/T AG AT RUBY
CREEK ADERA CORRIDOR
stuhini.com
STUHINI EXPLORATION DISCOVERS NEW HIGH-GRADE SILVER MINERALIZATION,
SAMPLING UP TO 456 OZ/TONNE (14,179 G/T) SILVER
stuhini.com
STUHINI IDENTIFIES GOLD TARGET AREAS AT RUBY CREEK AND SAMPLES UP
TO 121 G/T GOLD
stuhini.com
STUHINI IDENTIFIES NATIVE GOLD WITH COPPER, SILVER AND TUNGSTEN IN BOTH
HISTORICAL DRILLING AND CURRENT SURFACE SAMPLING WITHIN THE SURPRISE
LAKE BATHOLITH, ATLIN, BC, CANADA
stuhini.com
STUHINI IDENTIFIES HIGH-GRADE SILVER MINERALIZATION AT SILVER SURPRISE
AND DAYBREAK, SAMPLING UP TO 16,030 G/T SILVER
stuhini.com
.
CEO Dave O'Brien has mentioned in a couple of interviews in 2022 that he would like to spin
off the molybdenum project into a separate entity and form a new exploration company with
the remaining highly prospective areas of Ruby Creek, and their other projects.
Stuhini Exploration (STU) - Focus on World Class Molybdenum Project
youtube.com
Talk about splittng the company up begins around the 6 minute mark until 12 minutes .
Stuhini Exploration (STU) - Technical Analysis & Due Diligence
youtube.com
Discussion of spinning off the moly deposit off from the rest of the exploration assets occurs
in a couple of places, first mention is around the 2:45 mark, the more in-depth discussion of
a plan of arrangement / spin off / strategic partnership begins around the 44 minute mark.
.
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| From: pstad60 | 2/1/2023 9:17:13 PM | | | | | | Molybdenum prices continue climbing - supply deficits expected for next three years
2 - 15 month contract US$35.35/lb
1 month contract US$36.20
lme.com
The in ground value of Stuhini's Ruby Creek pit constrained 477 million lb moly resource is now over C$22.3 Billion.
US$35.35 x $1.3275 exchange rate x 477 million lbs = C$22,384,238,625
Stuhini market cap sits at $18 million.
______________________________________________________
Molybdenum Prices Hit a 17-Year High with Persistent Tight Supply
SHANGHAI, Jan 31 (SMM) - As The Supply Deficit Of Molybdenum Extends, Molybdenum Prices At
Home And Broad Both Hit New Highs.
In China, on January 29, a mining company in Luanchuan, Henan Province bid to sell molybdenum
concentrate at a record-high weighted average price of 5,305 yuan/mtu.
As of January 30, the prices of molybdenum concentrate reportedly returned to the 5,450 yuan/mtu,
a high point once seen in October 2005. In fact, the domestic molybdenum concentrate prices to date
have gained 6.78 times compared to November, 2015.
Due to the impact of the covid-19 and power rationing, the domestic molybdenum concentrate
output declined in 2022, while the overseas output also diminished due to aggressive production
cuts of overseas mines. Therefore, the molybdenum concentrate inventory in the third quarter of
2022 posted a significant decline. Recently, steel mills have a strong demand to replenish
molybdenum concentrate, driving the prices of molybdenum to soar.
Looking ahead, Huatai Securities believes that the molybdenum supply shortage will extend in
2023-2025, and the molybdenum prices are likely to trend higher.
On the supply side, the annual global molybdenum concentrate supply in 2023-2025 will see an
increase of no more than 15,000 mt compared with 2021. As we know, the molybdenum output
is stable from 2017 to 2021 at about 260,000 mt/year. China, as the world's largest supplier of
molybdenum, contributed to 38% of the global supply in 2021. However, the global molybdenum
output in 2022 is estimated at 246,800 mt due to production cuts at overseas mines and the
declining grade of molybdenum ore.
In forecast, the new molybdenum capacity around the globe will be small during 2023-2025. It is
estimated that the annual global molybdenum production in 2023-2025 will stand at 267,700,
273,700, 275,700 mt respectively.
On the demand side, the global demand may increase slightly from 2023 to 2025, and the market
supply may continue to be in shortage. It is estimated that the annual shortfall in supply will be
24,100, 26,400, and 34,300 mt in 2023-2025.
Source : news.metal.com
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| From: pstad60 | 2/3/2023 8:39:54 AM | | | | | | Asia ferromolybdenum breaches $95/kg on strong demand as supply dwindles
HIGHLIGHTS
Asia Ferromolybdenum trades as high as $98.85/kg
Conversion facilities booked up until March: trader
Supply expect to remain tight in first quarter
Asian ferromolybdenum prices hit a new peak of $94-$96/kg, the highest level since Platts Asia
weekly pricing began, jumping $19.75/kg, or 26%, on the week, amid heightened demand from
China and continued market tightness arising from supply disruptions.
The S&P Global Commodity Insights Ferromolybdenum CIF Asia Weekly price moved up to a
record $94/kg-$96/kg Feb. 2, from $75/kg-$75.25/kg Jan. 26.
Prices surged in the week to Feb. 2 as Chinese demand returned stronger than expected
following the Lunar New Year holidays, market participants said, further constricting the already
tight global ferromolybdenum complex driven by short covering in Europe.
"The market expected China to return strong, but not at the levels we are seeing now. We were
originally hopeful that China might export some ferromolybdenum out as prices in Europe are
much higher but domestic demand returned stronger than expected with little room for export,
" a North Asia trader said, adding that in the previous week ferromolybdenum was trading at
a $10-$15 discount to Europe, but prices had quickly risen in Asia with little room for arbitrage.
Market participants largely expect demand in China to remain strong, with participants reporting
over 10,000 mt of ferromolybdenum traded in the month of
January, higher than previously expected, with majority of the market away for one or two weeks
for Lunar New Year.
"Returning on Saturday from the festive break, prices were originally driven by high EU prices
but currently the surge is driven by domestic demand, which has taken us by surprise too," a
Chinese trader said, adding that domestic prices had risen sharply over the week, with trades
climbing from Yuan 298,000/mt ($44,298/mt) to well over Yuan 380,000/mt and with bids as
high of Yuan 390,000/mt heard rejected.
In the week to Feb. 2, offers were heard to be in the range of $91-$100/kg, with most deals
heard happening in the same range. This was still slightly lower than European prices with
Platts, part of S&P Global Commodity Insights, assessing Ferromolybdenum 65% European
in warehouse Rotterdam price at $102-$106.5/Kg on Feb. 1.
"Units are tight now, nobody wants to sell...as it will be hard to replace units sold with conversion
capacities booked till March -- if you need units you have no choice but to pay up," an international
trader said.
"The conversion premium is good now, and with such high prices we should by right see more
supply in the market. However due to the lack of prompt conversion capabilities and low inventory
levels with the majority of the traders destocking over the November-to-January period, there is
a void of cheap offers in the market," another international trader said, echoing the view of a tight
global supply complex.
Prices are expected to stay elevated with a confluence of market factors constricting supply
flows for ferromolybdenum such as stronger-than-expected demand from the offshore sector
and continued upstream molybdenum concentrates disruption in Chile and Peru, coupled with
historically low inventory levels as prices hit an all-time high, market sources said.
The Platts Daily Dealer molybdenum oxide assessment was $36.50/lb-$39/lb, with a midpoint
of $37.75/lb Feb. 2., up from $36.50/lb-$37/lb Feb 1, data from S&P Global showed.
Market participants also reported further upside potential for molybdenum oxide prices as at
current prices, the ferromolybdenum conversion premium remains well into double digits.
During Asian trading hours Feb. 2., there were reports of trades within the $38-$39/lb range,
higher than the $36-$38/lb deals reported Feb 1.
Continued upstream disruptions
Molybdenum, typically a byproduct of copper mining, is also seeing the impact of unexpected
disruptions in the copper mining sector in South America, on top of an expected structural
deficit in 2023.
A fire at Chile's Ventanas port in December 2022 hit shipments of molybdenum-producing mines
including Andina and Los Bronces, and there has been no confirmation on when operations will
return to normal. Seasonal swells along the Chilean coast have also compounded worries on
further shipment delays.
Meanwhile, protests in Peru following the ousting of former president Pedro Castillo have shown
little signs of easing, forcing some mines to halt production, including Glencore's Antapaccay and
MMG's Las Bambas. Concerns loom on whether the protests will spread to other regions and
cause further disruption, leading to more volatility in the molybdenum market.
Source:
spglobal.com |
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| From: pstad60 | 2/9/2023 3:10:27 PM | | | | | | Northern MIner interviews Stuhini CEO Dave O'Brien
Exclusive video: Stuhini CEO on molybdenum’s ‘dramatic’ price move and the Ruby Creek project
Posted on Feb 7, 2023
northernminer.com
Approximately 5 minutes in length
GLTA ! |
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