Moly Mines update: hedging and 27% more iron
The Canadian and Australian listed miner (TSE:MOL, ASX: MOL) has announced an increase of indicated iron supply, gave an update of its growth strategy and made a new appointment to its board.
The Spinifex Ridge project had an estimated 3.5 million tonnes of iron ore, but recent indications cap that resource at 4.5 million tonne – a 27% increase.
Under their growth strategy, Moly Mines has entered into hedging arrangements that are stated to provide "price and foreign exchange protection for approximately 50% of forecast iron ore
production over an 18 month period."
As the Spinifex Ridge iron and copper-molydbenium projects have short life expectancy the company is looking to increase its holdings. Primary methods for growth point either a merger or through acquisition financed through the Chinese commercial processes, namely their largest shareholder the Hanglong Group.
Lastly the company's update outlines the appointment of Kang Huan Jun as a non-executive director. Kang is the Chief Executive Officer of Hanglong Resources.