Timothy J. Bieb...'s  Instablog

Have you always wanted the sure thing in the stock market but never had that conviction for a stock? Time to take a look at a company that has "sure thing" written all over it.
I won't bore you with the details, but it wasn't that long ago that The Daily Reckoning wrote an article
" A Single Way to Play Virtually Every Sphere of the Energy Market"
If you haven't read it, you should.
I have taken the liberty of posting part of the article here for your review:

Supply and Demand of Molybdenum

Supply for molybdenum faces a similar conundrum to that of oil.  Although there is current mine production significant enough to meet demand, refiners, or roasters, are expected to run into a shortfall.  Guesses on when this shortfall, depending on demand, is estimated to come somewhere between 2009-2015.  Yes that’s kind of a large range, but let me tell you where that number comes from.

A roaster is similar to a refinery in that it processes the moly into a fine powder, pellets, or any other form refined moly used in the industrial world.  Total world moly roaster capacity can currently put out at an annual rate of 320 million pounds.  That 320 million pounds also barely meets global demand.  There isn’t much more roasting capacity left.  The problem is that there is no one actively permitting for the production of any new roasters here in the United States, and roaster production looks grim on a global level as well.

The exact date is impossible to predict, but a roaster shortage is definitely on its way.  The data above is based on one very important assumption.  The assumption is that mines will also be able to increase their output.  Western demand looks to increase by around 3% annually, while the demand of China and the C.I.S. are looking at a demand increase of around 10% annually.

Globally demand is expected to increase at around 4.5% per annum.  Unless moly mine production picks up at a rapid pace, shortfalls of the silvery metal are expected to arrive at around 2009.  Note that we are talking about mine production and not roaster capacity anymore.

This increasing demand can be attributed to two main factors.  Hydroprocessing catalysts are becoming essential in today’s market for crude oil.  The other contributing factor is the increase in nuclear reactors that are planned for production.  There are 48 nuclear reactors to be built by 2013, and approximately 100 that are to be built by 2020.

The International Molybdenum Association (IMOA) says that an average reactor contains about 520,000 feet of stainless steel alloy.  Some larger reactors contain over 1 million feet of stainless steel alloy.  With the metal alloy containing up to 8% moly, well you can do the math.

If you don’t believe me when I tell you a molybdenum crunch is on the way, would you believe China?  Your answer should be yes.  China currently produces around 20% of global production.  The IPO of a Chinese molybdenum ETF, China Molybdenum (very creative), jumped 59% after its open on Hong Kong’s Hang Seng Index.  Oh yeah, did I mention that China passed an export quota for moly on June 18?  If global supply is able to keep up with global demand, which I sincerely doubt, we’re still looking at China beginning to hoard the 1/5 of global production that currently produce.

Molybdenum has to supply the growing growth in all energy markets.  More and more people are industrializing in the developing countries.  That requires energy, and I expect that energy to arrive from numerous sources.   The supply and demand picture represents us with a double-edged dagger:  Roaster shortages are unable to keep up with growing demand.  Mine production is unable to keep up with growing demand.  I see both of these scenarios as very likely, but only one is necessary to send the price of molybdenum to new highs.  As one or both of these scenarios, expect China and the countries in the C.I.S. to limit and eventually negate exports, only throwing gasoline on the already blazing fire

The above information was taking from The Daily Reckoning article on molybdenum.
So where do you think General Moly GMO fits in now that they have a green light to become one of the world's biggest moly producers?
Sure thing---I think so!
disclosure-I currently own GMO

Disclosure: Long

Disclosure: long GMO