Screw it, double down man.
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I would be very happy with that outcome.
That would be a long timetable to achieve that scenario. Not sure what type of valuation that would bring. I'd be happy to see $5-$6 two years after they have permits in hand and start production.
In order to reach those levels polymet would have to own and operate multiple mines.
Even though it's been minimal trading it the first time there have been trades two days in a row since the SEC notice. Anyone hear from Derek?
I see the same.... 11666 shares at
.0015
I think it could go one of
two ways....
1. Bankruptcy, and we have witnessed on of the biggest collapses in the industry.
2. They avoid bankruptcy and we witness one of the biggest turn arounds in the industry.
It showed the trade here.
Molycorp Inc. (MCP), a mining company whose market valuation has fallen to $93 million from more than $6 billion in 2011, hired law firm Jones Day for advice on debt restructuring, a person familiar with the situation said.
The person asked not to be named because the matter hasn’t been publicly disclosed. Jim Sims, a spokesman for the Greenwood Village, Colorado-based rare-earths producer, declined to comment on the hiring of an adviser.
Jones Day helped Molycorp secure $400 million of loans from Oaktree Capital Management LP last year, the person said. Debtwire reported Wednesday that the law firm was advising Molycorp on restructuring.
Molycorp shares fell as much as 38 percent Thursday in New York. They have lost 99 percent of their value since peaking in 2011 after China restricted exports of rare earths, a group of minerals used in applications including batteries and wind turbines. The curbs causing rare-earth prices to surge. Prices subsequently fell after manufacturers found ways to replace or minimize their use of the commodities.
Molycorp dropped 17 percent to close at 38 cents in New York.
The company had total debt of $1.6 billion at the end of the third quarter, according to data compiled by Bloomberg.
Like a brick in water!
Heavy call selling sees little upside potential in advanced-material manufacturer Molycorp.
optionMONSTER systems show that 8,000 September 1 calls were sold for $0.05 this morning. Open interest in the strike was only 20 contracts before the trades appeared, so this is clearly new positioning.
The calls were not tied to any MCP stock trades identified by our systems today, but the options were very likely sold against an existing long position in a covered-call strategy. That is bullish up to the $1 level but not beyond. (See our Education section)
MCP is down 4.37 percent to $0.44 in early trading. The stock was couple of pennies lower this morning as it hit all-time lows. Shares have trended lower all year after trading above $5.60 last February.
..... 6200 shares traded
Chilean firm seals Duluth Metals deal, moves toward mine
Core sample Derek Montgomery / For MPR 2012
Chilean mining giant Antofagasta says it's completed its purchase of Duluth Metals, calling it a "positive next step" toward building a massive underground copper-nickel mine in northeast Minnesota.
Antofagasta and Duluth Metals had been partners in Twin Metals Minnesota, which for the past decade or so has been exploring the Duluth Complex, a rich untapped mineral deposit in northeast Minnesota valued at perhaps $100 billion near Ely and the Boundary Waters Canoe Area Wilderness.
The Duluth Complex remains an attractive geological deposit, and the merged company "will focus on further optimizations of the project and advance the permitting process," Antofagasta CEO Diego Hernandez said in a statement Wednesday.
Twin Metals completed a "pre-feasibility study" in August that predicted 30 years of profits and 850 jobs for the proposed operation. But critics argue a round-the-clock mining operation would harm the region's tourism economy, and threaten the pristine waters of the Boundary Waters with potential water pollution.
Before the $79 million Antofagasta acquisition, Twin Metals had said it was still more than a year away from submitting a specific mine plan to begin the environmental review process.
The proposed PolyMet mining project is much closer to possibly becoming Minnesota's first copper mine. The DNR is expected to release that project's final environmental impact statement this spring.
The only I saw was Newby's 30,000 shares. Really not that much...
Actual activity.
The exchange rate between U.S. And Canadian is an 18 cent difference. I find I curious that the two exchanges for polymet have a .26 cents difference.
Molycorp (NYSE:MCP) saw a significant decline in short interest in the month of December. As of December 31st, there was short interest totalling 51,868,791 shares, a decline of 10.5% from the December 15th total of 57,932,083 shares, Analyst Ratings Net reports. Based on an average trading volume of 4,998,059 shares, the days-to-cover ratio is currently 10.4 days. Approximately 28.0% of the shares of the company are short sold.
Molycorp (NYSE:MCP) opened at 0.461 on Wednesday. Molycorp has a 52 week low of $0.45 and a 52 week high of $5.62. The stock’s 50-day moving average is $0.74 and its 200-day moving average is $1.41. The company’s market cap is $112.8 million.
http://jutiagroup.com/20150120-which-commodity-horses-will-be-up-and-which-down-on-joe-reagors-merry-go-round/
TMR: Let’s talk about polymetallic projects. Which is your favorite?
JR: PolyMet Mining Corp. (POM:TSX; PLM:NYSE.MKT) and its NorthMet project in Minnesota. This is essentially for similar reasons as to why Pretium is our top gold pick. This year, 2015, is the key year for NorthMet to be permitted, financed and begin construction. However, whereas Brucejack could be delayed three to five months and still break ground in 2015, NorthMet has only a one- or two-month window in late Q3/15 to early Q4/15 to begin construction because of its location. Delays beyond that would push NorthMet into 2016. That said, it seems to be on schedule, and we think it will make it to the finish line, winning the same value-curve adjustment we’re predicting for Pretium.
TMR: Does PolyMet have a new permitting strategy?
JR: The current management, led by CEO Jon Cherry and CFO Douglas Newby, has learned from its mistakes and is now on the right course. PolyMet expects to issue its final environmental impact study in early spring. That will be, essentially, the end of the permitting process, and the company can then complete its financing.
TMR: NorthMet has 72 million pounds (72 Mlb) copper. How does the recent fall in the price of copper affect its profitability?
JR: If the copper price decline occurred when NorthMet was going into production, it would have been more of a concern. Generally speaking, a fall in copper prices today usually bodes well for three years from now. By the time NorthMet begins production, the price of copper will likely have rebounded significantly. Even at $2.50–2.60/lb, it would still be profitable. In addition, the company has offtake agreements with Glencore.
Foreign Producers Struggle as China Scraps Rare Earth Import Quotas
By Nishant Dixit
On December 31, 2014, China’s Ministry of Commerce announced that it had scrapped the quotas restricting exports of rare earth minerals and would replace them with a system of export licenses. The change follows China’s unsuccessful appeal of the World Trade Organization’s (WTO’s) March 2014 ruling that found the quotas were designed to benefit domestic firms and encourage foreign investment.
The export quotas had been in place since 2000 and raised shortage concerns in importers. In 2010, China’s drastic lowering of the quota triggered a sharp increase in the price of rare earth minerals, causing the U.S., the European Union and Japan to formally lodge a trade complaint in the WTO in March 2012.
Rare earth elements are the 17 minerals used to make hi-tech products such as hybrid cars, weapons, and mobile phones. China is the world’s biggest producer of rare earth elements and met 97 percent of global demand from 2005 to 2010.
China is also the world’s largest consumer of rare earth materials, with the country’s downstream industry consuming 70 percent of global production. Permissive climate regulations in China compared with Western jurisdictions mean that China is a leader in rare earth processing. For example, U.S.-based Molycorp sends its rare earth minerals to be processed in China because of strict environmental regulations in its home country.
Despite continued dominance in rare earth production, China’s share of world production slipped to 86 percent in 2013 and is expected to fall to 75 percent in 2015. Concern over shortage and high prices after the drastic quota hikes in 2010 prompted non-Chinese producers to invest in new mines.
China’s Rare Earth Exchange Begins Trading Following WTO Ruling
Australia’s Lynas Corporation opened the world’s largest rare earth processing facility in Malaysia to process its production from the Mount Weld mine, and Molycorp restarted its mine in Mountainpass, California in 2012.
Other factors, such as innovative uses of cheaper rare earth materials in manufacturing processes and smuggling of rare earths from China, meant that the Chinese quota system became redundant and actual export volumes fell much short of the quotas. For instance, in 2013, China exported 22,493 tons, while that year’s quota was set at 30,996 tons.
The removal of the export quotas follows a year of regulatory changes in the rare earth industry, such as the formation of the Bataou Rare Earths Products Exchange in March 2014 and the consolidation of smaller producers, including illegal mining operations into two state-owned regional monopolies.
The effect of the quota removal may thus be minimal since they were not working in the first place. However, according to the China Daily, a tariff of 15 to 25 percent on rare earths is expected to be removed in May 2015. This step may result in lower prices for rare earth elements.
While Chinese rare earth producers are consolidating with state support, non-Chinese producers like Molycorp and Lynas have struggled since rare earth prices peaked in 2011. Molycorp is at the brink of bankruptcy, while a combination of low rare earth prices and a high debt burden led to the lowest stock prices in 2014 for Lynas in its 14-year history.
According to announcements issued by China’s Ministry of Commerce License Bureau, exports of 39 types of medium and heavy rare earths and 36 types of light rare earth compounds will require export licenses. The companies to receive permission to export are not specified.
The government is also expected to announce a new rare earth policy in the second half of 2015.
Bottom?
Wouldn't be surprised to see a buyout by the big boys.
That's the way I see it.
Plus first 5 years of guaranteed purchases from Glencore at market rates.
I think Polymet is gearing up to be the processing powerhouse of this new mining boom. When Polymet's mine is fully operational they will only be using 35% of the processing power of their Hoyt Lakes plant. Leaves a lot of room to process your neighbors ore.
Antofagasta on the Twin Metals mining operation....
"While the mine would be in the BWCAW watershed, the company said it plans to process the ore in developed areas to the south, in the Lake Superior watershed."
Question....
Who will have processing facilities in developed areas to the south?
POLYMET!
http://www.duluthnewstribune.com/news/iron-range/3657929-antofagasta-gets-twin-metals-tuesday
Volume increase today...
Cleaned out some hands. Discounted prices yesterday, room to move now.
Bounce back to 1.10 end of day was unexpected.
Efforts by shorts to keep the price down. I'll load under 1.10 if we get that low.
Epidemap App is now available in the Apple store.
If this get back down in the .14s, .13s I'll take a position.
PolyMet Mining Corp. (NYSE:PLM) was the recipient of a large growth in short interest in the month of December. As of December 31st, there was short interest totalling 3,475,985 shares, a growth of 1.5% from the December 15th total of 3,425,776 shares, Stock Ratings News reports. Based on an average trading volume of 167,114 shares, the short-interest ratio is currently 20.8 days. Currently, 1.8% of the company’s stock are sold short.
Very large volume bump.
This Is very true, yes.
The EPA is looking at the MPCA to have stricter regulations on Mintac. They are already in financial trouble. Should be interesting to see this play out with PLM in the mix. Previously the MPCA had held their ground against the EPA.
Shares of PolyMet Mining Corp. (NYSE:PLM) were the target of a large drop in short interest during the month of December. As of December 15th, there was short interest totalling 3,425,776 shares, a drop of 1.2% from the November 28th total of 3,467,512 shares, AmericanBankingNews.com reports. Polymet Mining Corp. (NYSEMKT:PLM) in last trading activity moved up 7.27% to close at $1.18. Company weekly performance is 10.28% while its quarterly performance stands at 11.32%. Polymet Mining Corp. (NYSEMKT:PLM) is -24.36% away from its 52 week high.
Great start for Friday.
Broke 1.10. Took two days.
Happened to all stock boards dealing with the SEC Ebola suspension.
Lawyers looking to draw it out to keep getting paid. Wonder if they will get their meeting. They are requesting a meeting before jan. 16th so they might expect an early decision.