As a result, Blackmont Capital analyst George Topping thinks it is time to review General Moly Inc. (NYSEMKT:GMO) as a takeover target, given his expectations that it will attract interest from senior names like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Thompson Creek Metals Co. (TC), and Grupo Mexico SA (NYSE:TV). However, they may only make a move on General Moly in order to prevent its large source of molybdenum (8% of current supply) from coming to market, Mr. Topping told clients in a note.
He also noted ArcelorMittal’s (NYSE:MT) recent purchase of a 10% stake in General Moly as a sign of how serious steel companies are about the impending shortage of the metal often used in high-strength steel alloys.
The analyst maintained his “buy” rating on the stock, but hiked his price target to $15.25 from $12.70 per share.