EKA are expecting to mine 3.8 million lbs of Molybdenum this year. For the more sceptical amongst you, read this to confirm:

http://moneyam.uk-wire.com/cgi-bin/articles/200412150700023844G.html

They own the mine and the molydbenum in it has been independently varified as stated in the announcement linked above.

Molydbenum currently trades at around $38.50 per lb, you can check this at:

http://www.monterrico.co.uk/s/MetalPrices.asp

so do the sums 3.8m x $39.25 = $149m = 82m

Eureka Mining's market cap is 26m

In 2006 they expect to pull over 10,000 tonnes (20m lbs) of Moly out of that mine.

On top of all that they have recently aquired a mine in Russia with estimated contained metal of 3.32 million tonnes of copper, 3.26 million
ounces of gold and 98.9 million pounds of molybdenum. They hope to complete the feasibility study for this one in 2006:

http://moneyam.uk-wire.com/cgi-bin/articles/200501130700033169H.html

IC has recommended this as a buy today. This has helped it move up in early trades

Yes g64946, it has.

tallsiii, I think the Ambrian note is quite old and conservative, they will surely put out a new one once we get the January (hope so) news on Chelyabinsk. Once actual cash generation starts and we know the trading range for Moly (which should be higher in Feb/March) then the targets will be raised again I think.

My target is over 200p come end of 2006 !

Yes I can assure you that the two big sells were actually buys. Tempting to close today with a 2.5k profit, but am going to be in this one for a while. Positive news on Chelyabinsk and confirmation of cash flow could finally get the co. recognized.

That will be the key, the moment that Moly is sold and cash is coming in (at 3m $ a month please note when its in full swing around Q3 onwards) then EKA changes in the eyes of the big boys, and its a case of waiting to see now at what point they want to join in, or those already in, increase their holdings.

21.8m US$ in 2006 and Moly staying at 20$ then 36m US$ in 2007.

And thats just Moly and Shorskoye

Up all the way to the close there tallsiii.

Looks good for a strong January, the fuse has been lit by The Times rumour and The IC BUY rating, now it just needs Kevin Foo to throw the petrol on with a news announcement early January, and it will be on fire.

News this week or next tallsiii ?? Hope so, but anytime Jan would be fine.

The Ambrian old price target of 175p should be a distant memory by year end if everything goes to plan.

Thanks to a post on AFN you can have a read from this copy;


StanFParker - 2 Jan'06 - 13:00 - 325 of 326
Part of Investers Chronicle buy tip for EKA (www.investorschronicle.co.uk)

30 December 2005
EUREKA MINING (EKA)
This year, Eureka has made great strides with its two projects in the former Soviet Union. Chief executive David Bartley swung a peach of a deal with a local uranium company, KazAtomProm,
in Kazakhstan earlier in the year: Eureka has divested 50 per cent of its Shorskoye molybdenum project in return for access to production facilities. And resources estimates at its Chelyabinsk project are looking good.
The key to the Shorskoye deal is the molybdenum price, which has been hovering above $30 a pound for most of 2005, but is likely to weaken. Eureka has used a $20 short-term molybdenum price in its modelling, but if full-scale production gets under way in the early
months of 2006 it should be able to secure sales at the current sky-high prices.
Even using a $20 molybdenum price, broker Ambrian estimates that Shorskoye should generate cash flow of $21.8m (12.4m) in 2006. At the current price, Eureka is looking at cash flow of $3m a month. So the company won't be saddled with large debt finance costs, and will therefore be able to use its $14m cash pile to leverage the Chelyabinsk copper-gold project in Russia, acquired in January 2005.
Chelyabinsk is at an earlier stage than Shorskoye, but with a new resource estimate of 1.66m tonnes of copper and 2.8m ounces of gold verified by independent industry consultant Snowden, it's showing real potential. A scoping study is to start in the next few weeks.
But the shares haven't performed well this year as Mr Bartley has spent most of his time abroad, unable to reassure markets spooked by Eureka's association with Celtic Resources. There have also been stories circulating in the press - vehemently denied by Eureka - that the Chelyabinsk licence isn't secure. That sort of story is all in the nature of doing business in Russia, though, and with big-hitters such as Gerard Holden of Barclays and Joe Nally of Cenkos behind it, Eureka stands as good a chance as any of weathering the storm. Ambrian sets a target price of 175p. BUY

Net cash: $14m
Market makers: 6
Normal market size: 2,000

BULL POINTS
Full-scale molybdenum production is imminent
Attractive assets
Well-funded and backed

Good to see some blue today, this could be the start of a long run of mostly blue into that first production and sales of Molybdenum in a couple of months time.

Yes, can't seeing getting below a pound again now... barring a disaster.

I just hope that Kevin has some good news for us this week or next, that should take us past the 150p barrier with good news on Chelyabinsk some time this month.

The other thing is that the start of year weakness in Moly should go later this month or Feb and the price will shoot up again just before EKA starts selling. The outlook for Moly long term is a much higher price and here is just one example why.


SynFuel, the Petroleum Alternative
Zach Fross
December 7th, 2005

With the coming oil crisis looming directly ahead, there are going to be many opportunities in the energy sector to cash-in. One such opportunity will be alternative petroleum sources such as coal-to-liquid-fuel and natural gas-to-liquid fuel (GTL), otherwise known as synthetic fuel or SynFuel. SynFuel is rapidly becoming a popular alternative to increasingly expensive petroleum.

According to the U.S.E.I.A, the Middle East has an estimated 1.4 trillion cubic feet of untapped natural gas resources. In comparison the U.S. uses approximately 22.4 million cubic feet of natural gas per year. The problem for the Middle East is that it is difficult to get these vast resources to market; there is no existing infrastructure (i.e. pipelines, transport, etc.). With GTL technology, the natural gas is converted to liquid fuel (diesel, naphtha, and kerosene) and then transported to market utilizing existing infrastructure. This enables the Middle East to exploit vast natural gas resources and bring natural gas to market cheaply and efficiently.

The International Energy Agency recently released a report detailing the projected energy demand to grow over 50% by 2030. The estimated dollar amount to bring the energy supply inline with the increasing energy demand is $17 trillion. It is highly unlikely that the funds will be invested in enough time to keep the energy market from reaching supply deficiencies. This means that the price of oil will increase until the increasing demand is met with an increasing supply.

Two progressively more popular petroleum alternatives are coal liquefaction and natural gas-to-liquid fuel; otherwise respectively know as Clean Coal Technology and GTL. Recently, a company called Waste Management and Processors Inc. (WMPI) received government approval along with $100 million in federal funds to build the United States first waste coal liquefaction facility in Pennsylvania. The major technology used in liquefaction and GTL technology is the Fischer-Tropsch (FT) process.

The primary materials used in the FT catalytic conversion process are nickel, cobalt, and molybdenum. The better the catalytic material, the more liquid output obtained from the process. Molybdenum is the best catalyst and is becoming the most widely used. A full-scale SynFuel operation uses several tons of catalytic material per day ! As more and more countries around the globe begin utilizing the FT process to convert coal and natural gas into liquid fuel demand for catalytic material will proportionately increase.

Look for investment opportunities in the catalyst and catalyst materials markets. As new SynFuel plants come online, the demand for materials like molybdenum and cobalt will rise dramatically.


12/07/2005
Zach Fross

Well if Eureka has had a Celtic Resources shadow cast over it and dragging it down, then things will soon look better I think. Simon Cawkwell hears things will soon be all ok for Celtic and is backing our beloved Kevin Foo (All in his latest diary entry at www.t1ps.com)

This could mean a nice big news item coming for Eureka as well, now are we expecting some licencing news at EKA this month ??

I have highlighted a very relevent part of this news report, apart from the excellent prospects of Moly the bit about Chinese Traders stockpiling Moly for Q4 05, this caused the price to spike up, and is now causing a spike down from late Q4 05 into Q1 06, by Feb/Mar if not before the price will start to go up as these stockpiles are used up and these traders start to buy again I think.



http://www.gold-eagle.com/editorials_05/reser092205.html

MOLYBDENUM
The Big Secret

Ken Reser, Sept. 21/05

Subsequent to my previous report, "Molybdenum The 21st Century Metal" www.adanacmoly.com/articles/Moly_21st_Century_Metal-180KB.pdf I have done further extensive research for information on current and future uses of Molybdenum. This has been an undertaking of continual frustration & magnitude due to lack of mainstream information on this Noble Metal. Outside of the continual references to Molybdenum being used in stainless steel and other specialty metal alloys, fertilizers, lubricants and all the other uses I previously outlined in the 321 report (some of which are not reported in mainstream media) I have found what I consider the 'Big Secret' in regard to Molybdenum.

This so called secret involves considering that few people in the mining industry pay much attention to the Catalyst market for Molybdenum, if any at all. It is considered a small portion of the overall world demand in any charts, graphs or articles one may see and read. This is not the case as I see it from all of my own research. Consider why, when so many pundits and experts have continually called for the same dramatic and rapid decline in Molybdenum prices as we have seen in past when it spiked in price, that it has confounded all the predictions and has remained high for months on-end, all the while outliving those same wrongful predications. Today I believe there are little known, but yet profound changes afoot in the world of energy due to scientific discoveries in catalyst research that are outside the scope of most mainstream reports and articles on Molybdenum, and they are so dramatic and exciting that soon the entire Oil industry will soon be in shock. These changes being brought about by the new discoveries in the catalyst sciences involve coal, plastics and even used tires. The energy field I'm speaking of is 'Liquefaction'. In the 1950's and even earlier, Coal Liquefaction to produce fuel oils was known and studied in the USA, Germany, Japan and S Africa among others. Japan in 1940 produced 30,000 T of liquefied coal oil. Production continued until the end of WW2. Immediately after the end of the war the US military banned further research into coal liquefaction, alleging that it was military research. The process was costly and compared to the price of a barrel of Oil, not yet feasible. It has been stated that for Coal Liquefaction to be cost efficient and profitable, a barrel of crude must sell for $32.00. The Japanese have published reports stating $20.00 p/barrel. The better the catalyst functions, the higher the liquid yield rate becomes. Through international cooperation coal liquefaction has gone from the research stage to commercialization in Japan. Today China, Japan, Germany, Indonesia, & the USA have all embarked on projects with coal liquefaction. Before I continue with this discussion on the Liquefaction process tho, I would like to dwell on crude oil for a moment.

Today thanks to the scientific study of new age band catalysts, and Molybdenum Oxide, Nickel, Iron, Carbon & Cobalt compounds in particular, we now have catalysts that are helping refiners meet the stringent EPA & EEU pollution emission standards recently established. Sulfur is the culprit and the enemy of clean air and consequently due to the 2005 EPA standards (Diesel sulfur content has gone from 300 ppm to 50 ppm) the demand for refinery & hydro-cracking catalyst is going to increase dramatically. There is also another factor at work when considering the crude refinery catalyst demand.

For the last 20 to 30 years very few refineries have been built worldwide, and none in the USA. As I write this I'm reading of Venezuela building three new refineries and expanding two existing ones. China in a JV with its own Sinopec and Saudi Aramco & ExxonMobil have begun building their multi-billion-dollar refinery and petrochemical complex in China's Fujian province. Meanwhile a JV between Borealis & Abu Dhabi National Oil Co. is advancing another ethylene cracking facility in Abu Dhabi. One should be able to see the picture unfolding, "More Refineries" to come and most likely in Europe, Canada and the USA first. Other nations will invariably follow suit in this age of peak oil and rapidly increasing demand from developing nations like China, India, Brazil & SE Asia etc coupled with growth in the western world. The more refineries and hydro-cracking facilities in operation obviously mean's more Molybdenum catalyst demand. With less sweet crude now available and more sour heavy crude & Tar Sands Oil that has to be refined, it is going to mean a great increase in catalyst demand.

Next is the new looming production and market for (NG) Gas To Liquids Fuels (GTL). This market is fast becoming a reality and will invariably become a robust market for catalysts as well. GTL plants use catalysts of Cobalt/Iron/Molybdenum in the processes. Each GTL plant according to Bill Bell VP of Methanol & GTL Technology & Catalysts at Johnson Matthey "With GTL ready for ascension a big market for catalysts is now emerging & we are looking at thousands of tons plus of catalyst as inventory in a single plant". GTL plants (in 2003) are being considered in almost every corner of the globe that has reserves of NG, especially in areas like the Middle East where there is little local market for it & there are no pipelines to market NG. GTL converts natural gas (NG) into an easily exported liquid form. Shell in 2003 had a plant in operation in Malaysia & pursuing another in Qatar, as is Sasol Chevron. Chevron is also considering other plants in Nigeria, Australia & Caribbean. Exxon-Mobil is also interested in Qatar and Syntroleum is looking at Bolivian gas fields. BP is experimenting with a test plant in Alaska. (As this info on the GTL market is from 2003 I have no idea which projects may now be completed) So now I have outlined another little spoken of and upcoming demand on Molybdenum. The refinery demand for catalysts is already in the Billions of dollars and the worldwide demand for all the different combined types of catalyst uses in 2003 was approximately $7.5 Billion according to published reports.

According to a Roskill Metals report on catalysts (30/10/03) based on the steel industry states, Molybdenum demand has been growing at 2-4% p/a and in hydro-processing catalyst sector by 3-5% p/a. I believe now with higher emissions standards these latter catalyst demand percentages are now much higher if the truth be known. Also w/o going into detail for the sake of brevity in this report I will only touch on the fact that a Molybdenum/Ruthenium catalyst has been developed by Hitachi and other companies for a low cost Fuel Cell. We do know fuel cells will appear in cars, homes & industry in the near future. Washington State University (WSU) research teams have discovered an improved method of converting hydrocarbons (such as methane) into hydrogen and carbon dioxide using Molybdenum Carbide (Mo2C) as a catalyst. This conversion is an important step in fuel cell systems and processes that convert natural gas (NG) into useful petrochemicals. This patent is pending.

On another front Osiris in France and others involved in the world nuclear industry are testing a Uranium/Molybdenum enriched fuel for Nuclear reactors worldwide. This fuel will do away with using weapons grade Uranium in reactors and once perfected will be used throughout the world. The cost savings from low enriched fuel as opposed to the current highly enriched fuel is substantial as well.

Now lastly before I return to the Coal Liquefaction aspect that gave inspiration for this report, you should realize that the global demand for Molybdenum rose by 7.2% in 2004 to 374 million lbs from 349 m/lbs in 2003 as outlined in a study commissioned by International Molybdenum PLC and performed by CRU Strategies Ltd. mining consultants. Further CRU states that conservatively Molybdenum demand thru 2009 will grow by 3.5% to 4.1% p/a and the projected demand will be up to 475 million lbs in the same year. They also (CRU) project a deficit in Molybdenum production in 2008 and as much as a 14 million lb deficit in 2009. The theory of the world entering a "Super Commodities Cycle" is supported by recent reports by Citigroup-Smith Barney (China - The Engine of a Commodities Cycle, March 31 /05) and Goldman Sachs (Metals & Mining March 21 /05) and US Energy (Oil March 30/05) and along with the likes of the renowned Jim Rogers I believe this super cycle in finite resources is well underway and will last for many, many years to come.

The mining industry has been slow in responding to current growth in Molybdenum demand and low inventories. Several new projects, both primary and by-product have been promoted in recent months. Given the need for financing and environmental studies it is questionable if any or most of these projects will be producing by 2009. One or two projects seem to have the thrust, reserves and capability to achieve production in 2007/08 nonetheless. As another aside to the focus of this report it is also noteworthy to mention that a memo from the US Army Research Office: Research For Toxic Compound Destruction, states that the University of Pittsburg has shown that Molybdenum, in the presence of oxygen, is a true catalyst for destruction of nerve gas stimulant. A patent has been awarded on this work.

Now back to the Liquefacton portion of this report. The China Daily News online on the 03/12/2004 carried an interesting article on China's liquefaction projects. They stated in part that China has set up its first coal liquefaction research centre in Shanghai, a move to safeguard the nation's increasing oil supply shortage. The centre will explore and develop direct and indirect liquefaction technologies to produce gasoline & diesel fuel.

Shenhua Corp. one of China's largest coal companies w/ an 80% interest in this centre, has almost completed construction of a US $3.3 billion coal liquefaction plant in Inner Mongolia. Operations of this plant are expected to commence in 2005 to produce 1 million tons of gasoline and diesel fuel p/yr. By 2008 they expect to produce 5 million tons of oil with four more production lines. The second phase of the project will involve an additional investment of US $7.3 billion. Plans for two more coal to oil projects are on the shelf.

In another article by People's Daily news of Jan. 24/05 it is stated that by 2013, 10% of oil imports to China will have been replaced by coal liquefaction. The article also states that international indicators show that the process is profitable at between $22.00 to $28.00 US p/barrel and that the National Reform and Development Commission is considering making coal liquefaction one of China's key construction projects this year.

The other aspect of this trend towards liquefaction is the use of recycled tires and plastics in the process. The plastics alone it is estimated comprise approximately 21% by volume of US landfill sites. There is obviously no need to mention the quantities of used tires in the world. The process for the liquefaction involving tires & plastic is called Co-Processing and is achieved by combining feed-stocks of coal with the other two products simultaneously.

Without going into a long scientific and technical overview of the coal liquefaction & the co-processing technologies it is important to realize that the present success and feasibility of coal liquefaction is hinged on the recent perfection of an Iron/Molybdenum catalyst used in the de-sulfurization portion of the process. Soon you will be reading about another new scientific field concerning Molybdenum & Nano-Particle Technology. After all I have written about here in this report, it is my estimation and firm belief that we are now witnessing a historic time in the new expanding uses and demands on Molybdenum in the ever changing world of the Catalyst & Alloy Metals markets and those changes/discoveries are becoming more intense as time passes. To this end I believe now more than ever that,

"MOLYBDENUM IS THE METAL OF THE 21ST CENTURY"

(Post Script Notes) This report is not intended to infer that there is some conspiracy of silence afoot in the Molybdenum or Catalysts markets. In the title 'The Big Secret' simply refers to the seeming secrecy in the catalyst markets and to the lack of mainstream attention paid by mining media to Molybdenum.

Remember Molybdenum IS the biggest percentage dollar gainer of ANY metal in the last 18 months, and we hear little but negativity from media and mining websites.

Over the last few days I have read of Chinese Molybdenum traders stockpiling product for the end quarter of 2005 in order to have supply.

Sept 2/05 a London Mining article stated this in part- "Prices of Mo alloys all rose on Friday as buyers in search of large quantities found that the tightness of supply that had characterized the market in the early part of the year has not lifted." End

Yes there is a bottleneck in Roasting facilities and it is having some effect on Mo price, but why is there a bottleneck? Because demand is outstripping world roasting facilities. Quite simple really! With 5-7% more demand projected by various industry participants, I'd say they better get busy building a lot more roasters, and bringing new Primary Molybdenum Mines in the world onstream or we may see $50.00 p/lb Moly in future.

China's Metals Info Network, ANTAIKE on Aug 19/05 says new overseas roasting facilities will not be operational until after 2007.

Albemarle Catalysts of Louisianna who use approximately 10 million lbs of Molybdenum p/a, stated in a recent report- "We expect a 5% yearly growth rate in certain catalyst sectors" and so with the peak oil events facing the world and new refineries coming onstream (in Saudi Arabia & China) and expecting two more refineries in China as well as others around the globe, Tar Sands Oil, Coal Liquefaction, drilling exploration coupled with drill steel use & pipelines etc, the demand for Molybdenum & Cracking catalyst should continue to grow as will the specialty steel demand. Molybdenum has gained a new place of stature in the world's insatiable demand for noble metals.

New Update: According to the latest report from BCC Inc. Research, www.bccresearch.com/environ/C166R.html they estimate that by 2009 the market for Environmetal and Energy related Catalysts will grow by an average of 12.8% P/Yr. This is far beyond previous industry estimates I have outlined. Molybdenum it would seem has a bright future indeed.

If anyone has information on the Molybdenum markets they wish to share or would like to follow any of the Jr companies I represent please feel free to phone or email me anytime.


Ken Reser
Email: ykgold@telus.net
Ph: 403-844-2914

Just jumped up quickly, will we be getting news soon ?

Here is what the papers said earlier, they said it was close at the 21st Dec, so it could well be all done and signed now ;


"The Times 21st Dec 2005

Rumour of the day

Eureka Mining, the base metals explorer in which Celtic Resources owns 15 per cent, firmed 1p to 107p on AIM amid word that it was close to buying the 49 per cent of Russias Chelyabinsk copper and gold project it does not own. The company, which has an option to buy the stake for $6 million (3.5 million), raised 9 million at 125p in September, in part to fund the purchase. "


"The Times 6th Dec 2005

Further news:
*Wind taken out of sails of renewable energy project.
*Word that Eureka Mining (LSE: EKA.L - news) is close to buying the 49% of Russia's Chelyabinsk copper and gold project it does not own.
*US investor drawn to jewel in London Scottish Bank (LSE: LSB.L - news) 's crown."

tallsiii, keep your ear to the ground, rumours are that the Chelyabinsk deal is done, but its only rumour at the moment. I am hoping its confirmed and we get news this week.

Could be moving up again this afternoon, just swapped on L2 1 v 3 to now 3 v 1

PapalPower:-

Many thanks for all your endevours on providing info on this co, and the marketplace

In here last week - like the fact the shares bottomed out with the overall outlook
if rumours are true with regard to Chelyabinsk this has plenty of gas in the tank - just like VOG!

rwakeley, here should be no problem with returning to the recent placing price of 125p with or without any news. The target from Ambrian based on Moly is 175p, but if we got news of Chelyabinsk being 100% EKA, then I would see no problem being over 200p and in the range of 225p to 250p.

I think we have news coming, maybe in a day or a fortnight, will have to wait and see, but the movement today just after midday suggests news flow imminent.

If anyone hears anything from Foo or Bartley, then let us know.