(1888PressRelease)
July 28, 2006 - SARASOTA, Fla., July 28, 2006 (1888pressrelease.com) -
Sprott Asset Management Research Associate Maria Smirnova, who follows molybdenum and base metals for the Toronto-based money management firm told StockInterview.com, “Moly is also more insulated from certain economic downturns (than copper). If the U.S. housing market has a meltdown – signs of which we already see, moly will find a support in the energy and mining sectors, unless spending is reduced in those areas.”
Smirnova also told StockInterview, “Moly producers we speak with indicate they have no problems securing buyers for the metal. There is obviously demand, and it will provide a floor to the price.”
Smirnova doesn’t think the energy sector is likely to substitute moly with another metal, “Of course, moly substitution is possible in some applications, but its properties make it invaluable in energy-related sectors.” She pointed out, “Quality outweighs cost here and I don’t think anyone wants to see the Mackenzie Valley pipeline corrode and leak. The same would apply to any other oil and gas project.” Smirnova reminded us demand for molybdenum is unlikely to fade as long as oil and gas companies advance their projects, “This bodes well for the energy sector supporting moly demand going forward.”
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For the entire interview with Sprott Asset Management Research Associate Maria Smirnova, please visit http://www.stockinterview.com to read “Is Molybdenum Another Way to Ride the Energy Bull?”
Stockinteview.com is a rapidly growing online news service, which provides investigative reporting, editorial, analysis and commentary of the nuclear fuel cycle, uranium mining, nuclear power, the environment and the natural resource industry. Over the past three years, the Internet news website has covered the nuclear energy renaissance, the worldwide uranium mining boom and the potential influence of alternative fuel sources on China’s dramatic economic growth.
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(SOURCE: StockInterview.com)
