I had a look at the content and cost of #molybdenum in products like Liquid Moly Synthetic Oil and 3-5% Moly Lubricant/Grease. I assumed due to how recent the price of Moly has moved that price increases likely haven’t been pushed through.
Hard to get exact specs but it appears that high quality synthetic oils contain about 1 gram per litre or around 1% moly. So using $40/lb moly a 5 litre jug that runs $50-65 typically has about 45c of moly. Seems there would be little demand destruction even at $80/lb moly
Moly grease can contain up to 5% moly and a 14.1oz tube can range in cost from $12-15. So prices will rise about $0.80 to pass through a $20/lb increase to $40/lb. A further rise to $80/lb would likely see a further price increase of ~15% on top of that. More significant but… twitter.com/i/web/status/1…
One of the best investment qualities about a commodity like #molybdenum is that it appears to be used in rather small quantities as an additive and is also essential in many products. Drilling pipes in oil and gas, stainless steel, but also nano coatings on other high tech… twitter.com/i/web/status/1…
Another factor to help the investment case in a primary molybdenum mine like Greenland Resources is developing is that there are few primary mines in the world and most of the #molybdenum production comes from poly-metal mines where copper is the primary economic driver
Metals that primarily are produced as a byproduct again typically can rise significantly in price with out triggering much expansion on output. While the price rise and corresponding profits that a company like Freeport gets when the moly price rises is appreciated. It’s not… twitter.com/i/web/status/1…
In fact $fcx is likely to pick up close to $1 billion in additional profits from moly but since it’s ~$60b company it’s simply that that material. But, perhaps they will consider taking out a company like $moly Greenland Resources for long term strategic reasons.
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