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Sprott Molybdenum Participation Corporation

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Sprott Molybdenum Participation Corporation
Company typePublic company
TSX: MLY (trading ceased)
IndustryFinancial Services
Founded2007
HeadquartersToronto, Canada
Key people
Eric Sprott
ProductsHedge fund
Websitewww.sprottmoly.com (closed)

Sprott Molybdenum Participation Corporation was a dedicated commodity hedge fund created in April 2007[1] by Canadian investor Eric Sprott to invest in molybdenum assets. The primary investment objective of the corporation was to achieve capital appreciation by investing in securities of private and public companies that explore for, mine, and process molybdenum.[2] The fund was listed on Toronto Stock Exchange under the ticker MLY.

Investments

The fund purchased shares of both molybdenum miners and the physical metal. Substantial investments were made into shares of Blue Pearl Mining, arguably the world's largest publicly traded, pure play molybdenum producer.[3]

From April 2007, when Sprott raised C$200 million ($167.9 million) to January 2009, prices for molybdenum fell by 57 percent, and the fund’s value plunged 76 percent.[4] As a result, the fund had to liquidate itself and distribute residual assets to shareholders.[5]

See also

Rare materials as investments

References

  1. ^ Sprott Changes Mind about Moly
  2. ^ Sprott Molybdenum Participation Corporation announces appointment of new board member
  3. ^ Energy Guru Eric Sprott Wants More Molybdenum
  4. ^ Sprott to Close Molybdenum Fund After Metal Plunges
  5. ^ IBTimes: "Sprott's molybdenum fund to liquidate itself" 10 Jan 2009
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