"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, McEwen Mining (MUX) and General Moly (GMO). Please do your own research, markets can turn on you faster than a feral cat.

Tuesday, April 14, 2009

General Moly Pegs 5-Month High

Morning Miners!

Grab a cup, we've got some good news to chew on. General Moly (GMO) closed on a 5-month high yesterday at $1.47. It was a high volume day with nearly one million shares traded, twice their 90-day average! In early morning trading GMO opened at $1.60 and is presently $1.82 (7:44am). If you're in town, poke your head in the office and give the Eureka Moly guys a loud "Yee-ha!" from the ole Colonel.

What's going on? Moly prices are at a 5-month low dropping down to $7.95 from $8.20 last week. Maybe the answer is in the steel stocks. I compared GMO price action to Nucor (NUE) and ArcelorMittal (MT). The former represents domestic steel manufacturing and the latter, global steel production. Here are some interesting 1-month results:

GMO up >100%
NUE up 20%
MT up 45%

Don't you wish you'd put a little money on the bar when GMO stock was 64 cents? Similar to the rise in copper prices, I think we're seeing a little blue sky in the demand picture buckaroos!

Enough talk, let's walk the walk:

Oil is back over $50 in early trading to $52.51; the dollar ("Dixie" or .DXY) is up 0.26% to 84.832 and the commodity index (.CRB) is flat at 227.13.

Gold is down $6.0 to $889.8 (June contract); Silver is down 0.168 to $12.600; Copper has pulled back a wire gauge down $.0240 to $2.1015; Molybdenum sits not so fat but dumb and happy at $7.95.

The DOW is down 48 points to 8009.78; the S&P 500, down 3.97 points to 854.76. Gold miners are happy, General Moly is a party animal:

Barrick (ABX) $29.25 up 1.88%
Newmont (NEM) $42.38 up 0.71%
General Moly (GMO) $1.82 up 23.81%!!
Quadra (QUA.T) C$6.40 down 1.23%
Freeport McMoran (FCX) $45.89 up 0.66% (a bellwether mining stock spanning gold, copper & molybdenum)

Cheers,

Colonel Possum

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