Idaho General Mines Inc. shares rose 11 percent after a study showed the molybdenum miner’s Nevada deposit may contain 1.31 billion pounds of the copper byproduct.
Lakewood-based Idaho General gained 68 cents to $6.60 in American Stock Exchange composite trading, the highest close since Aug. 8. The shares have more than doubled this year, valuing the firm at $371.8 million.
The Mount Hope deposit will produce 38.3 million pounds of molybdenum in the first five years of its 44-year life, helping the company recoup capital spending on the project within two years, Idaho General said Thursday in a statement.
Molybdenum is used to make high-strength, corrosion-resistant steel for pipelines and other oil and gas equipment. Idaho General and Thompson Creek Metals Co., a competitor whose shares have surged more than fivefold in the past year, have benefited as higher oil prices prompted producers such as Exxon Mobil Corp. to boost drilling for new deposits.
