Sprott Molybdenum Participation Corporation
Encyclopedia
Sprott Molybdenum Participation Corporation was a dedicaded commodity
hedge fund
created in April 2007 by prominent 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. The fund was listed on Toronto Stock Exchange
under the ticker MLY .
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.
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. As a result, the fund had to liquidate itself and distribute residual assets to shareholders.
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
created in April 2007 by prominent Canadian investor Eric Sprott to invest in molybdenum
Molybdenum
Molybdenum , is a Group 6 chemical element with the symbol Mo and atomic number 42. The name is from Neo-Latin Molybdaenum, from Ancient Greek , meaning lead, itself proposed as a loanword from Anatolian Luvian and Lydian languages, since its ores were confused with lead ores...
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. The fund was listed on Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
under the ticker MLY .
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
Pure play
In financial management, a pure play is a company whose shares are publicly traded and that either has, or is very close to having, a single business focus. Coca-Cola is an example of a pure play in this context because it retails only beverages...
molybdenum producer.
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. As a result, the fund had to liquidate itself and distribute residual assets to shareholders.