Ok so Thompson Creek (the most respectable pure moly play out there) missed Q2earnings as their production costs soared 32% yoy (from $5.66 to $7.49 a pound). I am venturing that most of this cost spike had to do with surging oil prices (those big ass trucks that carry the moly from the mines basically run 24-7). However, now with oil apparently peaking (at least for the next 6 months), I am going back to Moly.
This decision isn't just because of oil prices, but because the industry fundamentals in moly are too good to ignore (shortages in 2008, 2009 and 2010 - that's what CPM Group says). Apparently, I am not the only one who has noticed moly's positive outlook as smart ass hedge fund manager Daniel Loeb holds a stake in TC with more than 4 million shares.
Positions: Long TC
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