http://metalsplace.com/metalsnews/?a=1414

The Malmbjerg deposit has been explored since 1954 by AMAX and other companies, and currently plays host to 147 diamond drill holes totalling 22,877 metres long with three underground adits totalling 1,329 metres. Galahad has reviewed all the previous data and is finalising its development programme. The inferred mineral resource stands at 118 million tonnes at 0.24% molybdenum sulphate and the orebody would support a 15-20 year mine life at a production rate of 15,000 tonnes daily. This would give the operation a break-even price of $4-5/lb molybdenum cash cost, and a total break-even cost of $8/lb. At a proposed rate of 22.5 million pounds per annum and at $30/lb molybdenum, this would generate roughly $500M per annum against a capital cost of $605 million forecast. All other things being equal, this would be throwing off cash within a short period of time


$500m is equivelant to 291m per annum
$750m is equivalent to 436m per annum

22.5m x $30 = $675m revenue
22.5m x $8 = $180m costs
22.5m x $22 = $495m profit per annum


IMY are only worth 35.4m, what price will they be in 2-3 years time, as they get to mining ?

"We are excited by the opportunities opening up for InterMoly. We expect significant gains in the value of the Malmbjerg project to accrue as it progresses towards the production stage."

BFS completion expected at the end of March 2006

Production could possibly be raised now that the resource is known to be 50% bigger(see latest RNS)
They will mine the highest grading areas first, 50% higher grade than the average, means around $750m profit per annum in the first year and a half
Price of Molybdenum might well go to $40 or even $50 according to some analysts, that would take profit into the $1Bn+ bracket for the first year and a half, without any rise in production


Measured and Indicated Resources of 217 million tonnes at a grade of 0.20
% MoS2 with an additional Inferred Resource of 12 million tonnes at a grade
of 0.15 % MoS2, using a 0.12% MoS2 cut-off grade


Higher-grade Measured and Indicated Resources of 33.8 million tonnes at a
grade of 0.28% MoS2, above a cut-off grade of 0.25% MoS2




"We are very pleased to report the resource upgrade at Malmbjerg to Measured and Indicated status. The new resource estimate further confirms the very large tonnage and grade of this world-class deposit and, encouragingly, the existence of a substantial higher grade zone. In addition, the new resource estimate increases the contained in-situ mineral resources at Malmbjerg by 50% from 630 million lbs to 950 million lbs MoS2 at the lower cut-off.

We expect the higher-grade zone to form the basis for initial mining of the deposit as part of the feasibility study being developed for the project. All sections of the feasibility study are currently underway. This is another significant step forward for the Malmbjerg project in realizing Management's objective to develop the project and create shareholder value." http://www.resourceinvestor.com/pebble.asp?relid=14720

InterMoly owns 100% of the Malmbjerg project. The Measured and Indicated Resource estimates will form the basis for determination of the mineable reserves upon completion of the feasibility study scheduled for completion by 30 March, 2006. A scoping study carried out by Hatch earlier this year anticipated a production rate of 15,000 tonnes per day with a 15 to 20 year mine life.


$32 per pound times 950m pounds equals $30,400m mined over 15 to 20 years, a world class deposit indeed



booming prices of copper and molybdenum

http://www.mercopress.com/Detalle.asp?NUM=6748

Regarding molybdenum this year's average price is estimated to remain at 32 US dollars the pound, similar to last year, but double the average two years ago


Molybdenum prices have increased from $6.00( US) to the current price of $35.00( US) over the past 18 months.
http://www.howestreet.com/adanac/

Last RNS showing the upgrade of resources
http://www.companyannouncements.net/cgi-bin/articles/200511170700262572U.html

Official Website
http://intermoly.com/

AIM Prospectus here
http://intermoly.com/aimAdmission.pdf


An analysts view of the Molybdenum market
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.

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.

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

All buying no selling again, so less stock in the MM's books means a fast price rise when the good news hits :)

Erik the Red

:O(

Missed the boat

Erik, great thread. Could you possibly e-mail me the Lemming research note as I am unable to download it.

Thanks very much,
ST

Well this is what iot is used for.

Molybdenum is used efficiently and economically in alloy steel & iron to

improve hardenability
reduce temper embrittlement
resist hydrogen attack & sulphide stress cracking
increase elevated temperature strengt
improve weldability, especially in high strength low alloy steels (HSLA)

Red Erik

Was this study below delayed is the latest RNS a report of this study.


The Measured and Indicated Resource estimates will form the basis for determination of the mineable reserves upon completion of the feasibility study scheduled for completion by 30 March, 2006.

Just got in for a small amount - it might have been more but some of these miners seem to move so sluggishly, although I notice that major shareholder and parent GLA also seems to be in the ascendant, while sister UMN has done very well thanks to sexier uranium.

will keep watching!

Driver, I'm not sure which report is which, but do seem to remember a report of things slipping earlier in the year due to climate-related delays. You know how it is anyway: schedules always slide!!

By the way, can anybody with L2 see whether there is a stock overhang of IMY at the market makers? I guess this is plausible given the SP's 80% slide over the last couple of years.

IMY Bid: 7p Offer: 7.5p Change: 0.25 on 10,000 shares traded.

Quite a jump today, almost 2 million shares traded. Anyone heard anything?

IMY Bid: 7p Offer: 7.25p Change: 1.125

Another big jump on today's RNs containing news of a bid approach:

Int. Molybdenum PLC - Preliminary Offer Approach

RNS Number:5658S
International Molybdenum PLC
08 March 2007

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF
AMERICA, CANADA, AUSTRALIA OR JAPAN

International Molybdenum plc ('International Molybdenum' or the 'Company')

Preliminary offer approach

The Company has noted the recent share price movement and confirms that it is in
preliminary discussions which may or may not lead to an offer being made for the
entire issued share capital and quoted warrants of the Company.

A further announcement will be made in due course.

Pursuant to Rule 2.10 of the City Code, International Molybdenum announces that
it has 136,866,667 ordinary shares of 1p each in issue (ISIN GB00B0CVPQ18)
together and 13,333,333 unexercised warrants over ordinary shares.

Enquiries

International Molybdenum plc
Ian Watson, Chairman
Anna Rebollini, Finance Director
Tel: 020 7408 2002

Matrix Corporate Capital Limited
Stephen Mischler / Alastair Stratton
Tel: 020 7925 3300

Parkgreen Communications Limited
Cathy Malins / Annabel Leather
Tel: 020 7851 7480

The Directors of International Molybdenum plc accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the Directors, who have taken all reasonable care to ensure such is
the case, the information contained in this announcement is in accordance with
the facts and does not omit anything likely to affect the importance of such
information.

Matrix Corporate Capital Limited is acting for International Molybdenum plc and
no one else in connection with this announcement and will not be responsible to
anyone other than International Molybdenum for providing the protections
afforded to clients of Matrix Corporate Capital Limited or for providing advice
in relation to the contents of this announcement.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the 'Code'), if any
person is, or becomes, 'interested' (directly or indirectly) in 1% or more of
any class of 'relevant securities' of International Molybdenum, all 'dealings'
in any 'relevant securities' of that company including by means of an option in
respect of, or a derivative referenced to, any such 'relevant securities') must
be publicly disclosed by no later than 3.30 pm (London time) on the London
business day following the date of the relevant transaction. This requirement
will continue until the date on which the offer becomes, or is declared,
unconditional as to acceptances, lapses or is otherwise withdrawn or on which
the 'offer period' otherwise ends. If two or more persons act together pursuant
to an agreement or understanding, whether formal or informal, to acquire an
'interest' in 'relevant securities' of International Molybdenum, they will be
deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant
securities' of International Molybdenum by any offeror or International
Molybdenum, or by any of their respective 'associates', must be disclosed by no
later than 12.00 noon (London time) on the London business day following the
date of the relevant transaction.

A disclosure table, giving details of the companies in whose 'relevant
securities''dealings' should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
www.thetakeoverpanel.org.uk.

'Interests in securities' arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an 'interest' by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a 'dealing' under Rule 8, you should consult the Panel.

IMY Bid: 10p Offer: 10.75p Change: 3.25

1.47 mil traded already today.

Current mkt cap 14 mil; net assets at last results were 8.6 mil.

The pre-feasibility study results released in December 2006 looked very positive, so I wonder what the ultimate takeout value of IMY will prove to be . . . .

Still heading upwards: IMY Bid: 12.75p Offer: 13.5p Change: 1.375

And up again: IMY Bid: 13.5p Offer: 15p Change: 0.875

And there's more: IMY Bid: 13.75p Offer: 15p Change: 1

Up again today: IMY Bid: 15.5p Offer: 16.25p Change: 1.25

According to an RNS, RAB Capital now holds 11,870,000 shares (8.67% of the company). RAB has been adding steadily for some time now.

Up some more this p.m. 592K traded.

IMY Bid: 16.5p Offer: 16.75p Change: 2

Off just a smidge today: IMY Bid: 15.5p Offer: 17p Change: -0.125 39k traded.

Mkt cap 21 mil

Swinging around the right way again: IMY Bid: 16p Offer: 17p Change: 0.125

Keeps on rising! IMY Bid: 17.25p Offer: 18.25p Change: 1.25 607K traded so far today.

RAB still adding:

Total 12,070,000 (8.82%)


(b) Interests and short positions in relevant securities of the company, other
than the class dealt in (Note 3)

Class of relevant security: Long Short
Number (%) Number (%)

(1) Relevant securities
(2) Derivatives (other than options)
(3) Options and agreements to purchase/sell
Total


(c) Rights to subscribe (Note 3)

Class of relevant security: Details


3. DEALINGS (Note 4)


(a) Purchases and sales

Purchase/sale Number of securities Price per unit (Note 5)
Purchase 200,000 GBP 0.1571