Moly Mines ltd

Little did I know that when I sold my Moly holding on the 17th January 2011, a day later the company issued a company update regarding (partly and most importantly) the financing of the Spinifex Ridge Project.

Essentially there would be a delay in the financing, hence raised doubts about the future of Moly's molybdenum project. The announcement resulted in a drop of Moly's share price by 22% to $1.10 by the time the ASX close. What a near miss, as I am not in the habit to put a stop loss on my share holding.

Looking back at the chart, I should have bought back in at $1.02-1.03, and then sold again around $1.20 for a quick profit, but unfortunately I did not. The uncertainty was putting me off a little bit, and while I still believe that  the future still might be great for MOL, I would just sit back and wait for the cloud to clear out.

Charting wise, MOL is in the downtrend at this moment, sliding back to $1.14 yesterday. With the uncertainty and lack of good news, I expect it still drifting down from here.  Another issue to consider is the amount of funding that Moly need. The company needs around $1.2 billion to build the whole mine.  Hanlong funding of $500 million is not enough, so we should expect another right issue to top it up.