Molybdenum prices remain strong
posted on
Jul 11, 2024 06:03PM
Stuhini's Ruby Creek moly deposit contains a pit constrained 476 million pounds in measured, indicated, and inferred resources. The known resource is open in three directions and at depth.
For example, one of the old historic drill cores, AD 417, ended with a high grade intercept of 0.23% moly over 42 meters at the bottom of the hole. It is unkwown how much deeper the mineralization goes. The AD417 hole also lies outside the pit constrained resource estimate.
Daily spot price of molybdenum posted at us$29.96/lb :
https://www.dailymetalprice.com/metalprices.php?c=mo&u=lb&d=20
2 thru 15 month contract prices for #molybdenum currently quoted at us$23.01/lb :
https://www.lme.com/en/Metals/EV/LME-Molybdenum-Platts#Trading+day+summary
Current market cap for Stuhini is only C$7.9 million with 46.5 million shares outstanding.
In October of 2022, Zijin Mining bought the world's largest underground molybdenum deposit for roughly US$800 million, which worked out to approximately US$0.16/lb in situ.
If $0.16 were applied to Stuhini's 476 million lb open pit Ruby Creek molybdenum deposit, it would equate to C$102 million or $2.15 per share.
During the last molybdenum cycle in 2004-08 the only molybdenum deposit to actually reach a production decision was the Ruby Creek deposit, operated at the time by Adanac MolyCorp which had a market cap of over C$250 million.
Stuhini owns 100% of the Ruby Creek molybdenum deposit now, after having completed the final option payment in 2023.
Stuhini Exploration is extremely undervalued.