Management of Velocity believes that demand for molybdenum will continue to maintain or exceed current levels due in large part to the unprecedented industrial activity in Asia and the fact that moly plays an essential role in the manufacture of various types of steel without readily available substitutes. Molybdenum is also used in some instances as a catalyst in the removal of impurities from lower quality petroleum, which, given the dramatic rise in crude oil prices and thereby the economic viability of lower grade petroleum, should bode well for moly prices.
Further, we have seen demand for molybdenum increase dramatically in the past fifteen years without a corresponding increase in the development of new or expanded mines. Thus we believe that the intersection of demand growth and supply constraint has created an opportune time to aggressively pursue the accumulation and development of molybdenum assets.
In addition, there has been significant historic exploration of molybdenum properties that, due to previously low commodity prices, were abandoned. For example, it was the revisiting of these types of properties that lead to the Company acquiring its current projects. Management believes that there are further opportunities in this regard to be pursued.
Finally, together with investor support, the Company has assembled a capable management team to not only further our current projects but to also seek out and assess additional prospects and deposits.
In short, we have the people, we have the support and the time is now to launch a campaign to gather together an inventory of advanced or high grade molybdenum properties and to take the first steps to realizing our vision to make Velocity the molybdenum leader of the 21st century.