Blue Pearl rated 'buy' on molybdenum demand

24 January 2007 | 05:06 Code : 12520 Geoscience events
visits:80
Blue Pearl Mining, the world's largest publicly traded pure molybdenum company....

  Blue Pearl Mining, the world's largest publicly traded pure molybdenum company, is rated "buy" by UBS Securities Canada Inc. because its production should begin to increase in 2008.Molybdenum is used to make steel and high-strength alloys.The shares of Blue Pearl closed Friday at $9.87, up 38 cents. UBS has a 12-month share price target of $11.UBS forecasts the price of the metal at $22.50 (U.S.) a pound in 2007 and $20 in 2008, compared with an average of $4.50 a pound from 1994 to 2004.The recent $575-million acquisition of Thompson Creek, a Colorado mining company, should result in production rising to 33 million pounds by 2009 from an estimated 20 million pounds in 2007, said UBS's Brian MacArthur in a recent report. Blue Pearl's production in 2006 is estimated at 26 million pounds.

tags: QAZVIN


Your Comment :