Moly Mines (MOL)

Shares / Stock Code

MOL

Stock Exchange / Sharemarket

ax

Moly Mines (MOL) is a listed resources company focusing on the development of base metals projects including the world class Spinifex Ridge Molybdenum - Copper Project. MOL has achieved all significant milestones to attain full project funding for the Spinifex Ridge Project. The mine will operate at 20Mtpa to produce ~10,900t of contained Mo and 12,250t of contained Cu per annum. The Measured and Indicated resource has been increased to 652Mt at 0.045% Mo, 0.08% Cu and 1.27g/t Ag. The project life will be in excess of 20 years. MOL has arranged a US$150M interim financing facility to assist in project development as it tries to arrange full project funding. Moly Mines listed on Australian stockmarket (ASX) on 11 March, 2004 and is also listed on the TSX.

MOL acquired 100% of Spinifex Ridge in May 2006. Western Australia's Minister for the Environment recently approved Spinifex Ridge for development. MOL has an off-take agreement whereby ThyssenKrupp Metallurgie GmbH will buy all the Mo produced. Some 70% of the project's capital costs have been contracted or tendered. A potential bonus might be high-grade, massive hematite iron that has been intersected close to Spinifex Ridge.

Distribution of molybdenum reserves and production is concentrated in only a few countries around the world, with the US, Chile, China and Canada holding almost 90% of reserves. Peru, Chile and China are the main producers (75%). MOL has completed a definitive feasibility study at Spinifex Ridge and is targeting production in 3QCY10. This would see Spinifex Ridge become the first primary molybdenum mine in Australia.

Most customers for molybdenum are producers of specialty alloys. Molybdenum is used for producing stainless and other specialty steels. Major competitors include other exploration and mining companies throughout Australia and overseas. Some mines produce molybdenum as a by-product credit, usually from copper mining. This source of the metal is produced regardless of the price or the state of the supply and demand balance.