The above picture is Moly concentrate floating to the surface of the flotation circuit of Roca Mining's now operational molybdenum mine. Quite a color, eh?
Roca Mining is now producing big bags of money (see below).
At the estimated 5 million lbs/year production with a sales price of 90% of the current moly price (33$/lb) and an operational cost of 7$/lb, ROK.V is set to produce 113M$ of operating cash flow / year. Given its current market cap that's a price to operating cash flow ratio of approximately 3.5. Very undervalued compared to Thompson Creek (TCM.TO), the only other primary Moly producer available on North American exchanges.
The kicker is that ROK'V announced last night (http://www.rocamines.com/s/NewsReleases.asp?ReportID=272033&_Type=News-Releases&_Title=ROCA-MAX-Exploration-Drilling-Update ) some very promising drill results. They aren't officially assayed yet, but that leaves another major catalyst for a price rise when the official results come out in about a month.
If I weren't heavily overweight in ROK.V, I'd be looking for an entry point. Come back tonight for an update on its bullish cup and handle chart formation.
The outlook for Moly is also very bullish right now. I hope to be posting my thoughts about this sometime soon as well.