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Moly Mania Print E-mail
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Sunday, 01 April 2007

Moly Mania

While Gold Consolidates – Moly Appreciates

Snippet from issue #111

Over the last few months, some very important developments have occurred in the molybdenum (moly) market. Aside from the price moving back to above $30/lbs (just a few years ago it was in the single digits), moly has been garnering greater investment attention. Just last week, CNBC had a few bullish commentators mentioning molybdenum, a rather obscure metal to the investment world but that appears to be changing quickly.

Back during my PDAC (Toronto) trip in March, it was announced that a $75 million Sprott Molybdenum Participation fund was being put together. Not only did this put great attention on this metal and bring additional investment into the sector, molybdenum companies began to make significant moves as investors took notice. Last week, several moly stocks I follow made even greater leaps forward, some nearly doubling in value!

With a limited selection of molybdenum plays out there, and of all the molybdenum stocks I follow, the one that continues to show the greatest appeal to me is Win-Eldrich Mines Ltd. (TSX-V: WEX). Subscribers can search archives for additional information on the Ashdown project and on WEX.V, but for those looking to cash-in on the moly-mania developing, Win-Eldrich makes for an excellent option.

Production is about to get a boost at the Ashdown molybdenum mine in Nevada and with just about a tiny $20 million market cap, 13 million or so fully diluted shares, tight float, no debt, and 40% exposure to the Ashdown property, WEX.V remains my top moly pick and has been so for many years.

Last week, WEX.V’s partner in the project, Golden Phoenix Minerals / GPXM / (which holds the remaining 60% of the project) announced additional progress in ramping up production to the full 100/tons per day capacity. Although cash flow has been slow to arrive due to limited initial start-up of the mine, over the next months it is targeted to increase. This combined with the relative size of WEX.V along with the molymania which appears to be developing makes this an opportune time to take a look back at this investment.

For those looking to keep on top of the molybdenum market, point your browsers to the website.

Please note in the interest of full disclosure, the author does own a position in WEX.V and GPXM and sites associated with him have an advertising relationship with the WEX.V.

Also please note - a word to all investors: Internet message boards are abound with fiction, gossip and rumors all perpetuated by those hiding behind anonymous names. Investors should be very careful with information found from these sources. Doing your own research is highly recommended before making any investment decision and all investors are advised to speak directly to companies and not rely on suspicious sources for investment information.

Win-Eldrich Mines Ltd

(TSX-V: WEX) 3-Years Daily

Supports: C$1.65-1.75, $1.25

Resistance: C$2-2.25, $2.75-3

WEX.V has moved higher on good volume last week, heading back above $2 after breaking its year-long downtrend resistance. The C$1.50-$1.75 is an area of good support; the stock does have a tight float and can be illiquid at times. The move back to above C$2 on strong volume portends to additional gains in the coming weeks and months, most likely along with positive productions news. Pullbacks appear to be good buying opportunities, although there appears to be some supply just overhead that needs to be swallowed up first – not a difficult feat with even minimal investment interest in this low float company.

Please visit to read the rest of this report...

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