Issue link: http://resourceworld.uberflip.com/i/612354
d e c e m b e r / j a n u a r y 2 0 1 6 www.resourceworld.com 13 w w w . Te r r a L o g i c E x p l o r a t i o n . c o m 7 7 8 . 5 2 0 . 2 0 0 0 Geochemical surveys | Geological mapping & prospecting Drill programs | Camp Construction & Management Data Management | Custom GIS solutions Cartography D R I V E N B Y D I S C O V E R Y With a deficit next year, analysts at Macquarie expect to see a turnaround in prices back towards $6,000/tonne after the sea- sonal first quarter surplus period. However, Macquarie analysts said nervous producers are likely to hedge from $5,500/tonne upwards, capping much stronger upside. "After a balanced 2017 we continue to project a widening deficit and strong price upside as the lack of project development since 2012 becomes acute, even at tepid demand growth rates further out,'' they said. MolYBDeNuM There isn't much optimism these days among producers of molyb- denum, a key ingredient in the steel production process. After seeing prices tumble all the way from $40/lb in 2007 to less than $4.85/lb, a number of producers have shut down their operations. Taseko Mines, for example, recently closed the 2.5 million pound per year moly production line at its Gibraltar Mine in British Columbia. Thompson Creek Metals suspended operations at its Endako Mine at the end of 2014 due to "prolonged volatility" in the market. "We don't see any significant signals from the market that will lead to a change in price,'' said Brian Battison, Vice-President, Corporate Affairs at Taseko. On the supply side, partners KGHM International and Sumitomo Metal Mining have been commission- ing the Sierra Gorda Mine in Chile, which is expected to produce 120,000 tonnes of copper, 50 million pounds of moly and 60,000 ounces of gold annually. urANIuM U 3 0 8 prices have remained relatively steady this year, with spot prices hovering around $36/lb, writes Scotia Capital in a report. Sentiment has been significantly bolstered since August by the first Japanese reactor restart following the Fukushima disaster in 2011 – this has been the biggest overhang on the market. While Scotia Capital analyst, Orest Wowkodaw, anticipates