Did anyone notice this one in last week's IC? According their report the company is likely to make $50m in their first year of production. It seemed of particular interest to me as their market cap is about $50m.

I have bought into the company. Does anyone have an opinion to share on the company?

You can do the sums for yourself. At current Moly prices the profit for 2005 should be around 60m.

When IC did their forcast of $50m in profit for 2005 they were taking a conservative view on the Moly price being at $10 per lb rather than the current $33 per lb. They are right to take this view as the price may come down significantly by the end of the year. Though I don't think it will be by that much.

For what I can gather from a number sources the unit cost of mining the moly will be significantly less than $5 per lb.

I agree though. The announcement would be just thing to have this share work for us like BFC did.

Perhaps you should send an email ask if they are expecting any news soon and drop a hint. My emails busted.

Couldn't find an email address, but did give them a ring last week. I had to phone back three times before I could actually speak to the MD David Batley. But when I did he seemed a very decent chap. They are only willing to say they 'will do' what they are sure they 'can do'. Hence they are waiting for the feasibility study to be fully completed before they start marketing themselves. This is a wise course of action in my opinion, and it presents us with a nice long buying opportunity before the results of the study are out this month.

Good thanks for that should be profitable

Up a fraction news this month u think?

Yes. Each day I review my research on this one because is looks like such an unbelievable opportunity, but so few others have cottoned onto it!!

At current molybdenum prices they should make 70m this year and 350m next year. That compares rather favourably to the current market cap of 20m. To fulfill the IC forecast of first year of profit equaling current market cap moly prices would have to drop by 80%.

I will just sit and wait for the news and hope that in time others are able to see this opportunity and jump in, proving me right.

Tallsiii

Eureka Who ? Sounds to me like its all in the price. But have any of you had a look at Vane minerals if your not a widow or an orphan these may be for you.

All in the price? Even if we were in the worst bear market ever and Kasakstan were about to go to war with China, this share would still be cheap....

2005 Forecast PE 0.5
2006 Forecast PE 0.1

sounds interesting...will look further into it.