HUGE NIOBIUM PRICE SPIKE - WHY IT SHOULD CONTINUE
Niobium prices continue to soar. We've heard metal brokers report bids to buy Niobium (Ferro Columbium) at $68.00 – 70.00 per kilo USD. This is making Commerce Resources(CCE) an even more attractive stock, as if things weren't good enough already.
Apparently, this niobium price spike is caused by the increased demand for steel against the problems that CBMM (the dominant niobium producer) are apparently having. Unlike molybdenum projects, of which there are many, there are very few late stage Niobium projects looking to go into production in the next 18 months to 2 years that will be able to capitalize on this price spike. This scarcity of Niobium will probably continue then to put upward pressure on the price.
All of this actually puts the value of Commerce's Niobium just slightly above that of their Tantalum. There are also reports that Tantalite is starting to move up in price a little bit because of Niobium content in it.
Commerce Resources does have, at this time, drill proven resources totaling 120M pounds of Niobium, along with 22M pounds of Tantalum.
For those unfamiliar, Niobium is an additive to Steel that increases it's tensile strength. Add two percent Niobium to Steel and the Steel triples it's PSI strength from 40,000 to 120,000.
The US military buys 50 tons of Niobium per month.
As well, Commerce is doing an SGS Lakefield re-do, on a commercial sized sample (the hydro metallurgical test they ran for them in 2004 which showed Commerce's ore consuming less acid than the industry standard). If they confirm these results, Commerce will be the lowest cost producer of tantalum on the planet.
We're told they expect data back from SGS in about 3 weeks
For more information on Commerce visit www.commerceresources.com