News

November 03, 2008

Geodex Minerals Engages In Some Belt-Tightening On Its Tungsten Properties, But Overall The Fundamentals Still Look Good

By Alastair Ford

It’s sure is a clear sign of the times that company directors are now cutting their own salaries. That’s just what the entire board of Geodex Minerals has done, from the president down, all part of a major cost-cutting exercise designed to see the company through the worst of the current credit crisis, and allow it to emerge intact out the other side. The company has C$1.1 million in the bank, and one project funded until the end of the year by Teck Cominco, which is also the holder of a C$1 million convertible note, so although things are tight, there’s no impending doom.

There’s also a couple of bright spots on Geodex’s horizon. The first is the price of tungsten, the primary metal the company has in its portfolio, and the second is the price of molybdenum, which Geodex also has significant quantities of. Geodex’s IR chief Christopher Anderson paid Minesite a visit this week, and explained how tungsten, as a non-terminal traded metal, is now actually reflecting the supply and demand balance better than LME-traded metals, where prices are complicated by hedging...