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Sarasota, FL, United States, 2006/11/10 - Sprott Asset Management Research Associate Maria Smirnova told StockInterview.com there is a lack of new supply sources to meet the strong demand for molybdenum, a strategic metal..
Sprott Asset Management Research Associate Maria Smirnova told StockInterview.com, “We see demand growing, while there are not many new sources of supply.” Smirnova studies developments in the molybdenum market, and other base metals, for the highly respected Toronto-based management firm. “In a market where 16-20 million pounds of new supply is required every year to keep up with demand, we are aware of less than 10 million pounds coming on-stream next year from new mines,” Smirnova said.
In the interview, she discussed the prospects of two molybdenum companies in which Sprott Asset Management has taken a stake. Of her favorite, Blue Pearl Mining (TSX: BLE; Frankfurt: A6R), Smirnova told StockInterview, “Blue Pearl’s acquisition of Thompson Creek Metals has catapulted it to one of the largest and most profitable mining companies in Canada. Blue Pearl now ranks in the top five of the world’s moly producers.” Another favorite for the money managers is Roca Mines (TSX: ROK). “Roca is one of the very few emerging moly producers that we know of,” she said. “Roca is still progressing towards beginning production at the end of this year or early next year.”
Other potential near-term molybdenum producers featured in the StockInterview.com article included United Bolero (TSX: UNB; Frankfurt : U7N) and Win-Eldrich Mines (TSX: WEX). She did not provide comments for those.
Smirnova looked past 2007 in assessing the molybdenum mining sector, “In the longer term, there are a number of large projects that could provide over 100 million pounds of new mine supply by 2010. Unfortunately, most of these are low-grade projects requiring large amounts of capital investment. We think that at least some of this expected supply will get delayed or mothballed altogether due to permitting issues and financing difficulties.”
The feature article entitled, “Primary Moly Producers: One Key to the Molybdenum Price,” was the second part of a two-part series on the molybdenum mining sector, which appears on the financial news website.
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