Ann: Vital Metals to Present at Virtual Conference, page-33

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seaemay

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09/05/20

15:10

Post #: 44527801
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Originally posted by prawn_man: ↑

Amigo, you are right to think that Vital's operation of producing a 35% concentrate by ore sorting will be the lowest capex and lowest opex of any company. The presentation (which can be downloaded from Vital's announcements) shows that they are going to "walk before they run" in order to minimise initial capex. First their simple ore-sorting operation will produce a concentrate that will be sold to international refineries where Cracking and Leaching (C&L) and purification will be carried out. Vital has already shown that C&L works well with its concentrate, so they want to get customer satisfaction and build a supply line with the industry (ie fill existing gap). Maybe cash flow from the first few years of operation at North T, will be used to develop their own C&L processes and to produce refined pure product - but we have to wait to see what eventuates in that space. Unfortunately, there is mystery surrounding rare earth companies - I have tried to find out details of Lynas's processes, but it is not available in their announcements or presentations. It probably involves intellectual property and in-house processes. Maybe some other posters can set us straight on that. But the key feature of Vital's management is that they know the processes and the industry, both inside and out. Also they have plenty of skin in the game and have a clear plan to make Vital the next Tier 1 REO company. Once they get North T operating and producing cash flow, they have the much larger Tardiff zone as well as Wigu Hill in Tanzania to come on line. IMO it is a rare opportunity for small investors to get in on the ground floor (market cap is only $21 million). Geopolitics and advances in technology are both screaming out for new rare earth operations in North America. Rare earths are needed in everything from windmills, to electric motors, to submarines to EVs to fracking chemicals (slide 7). I'm holding this baby for the longterm.

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PM, what's your feeling about the effect the 800M performance shares will have on things when they're finally issued? I'm guessing by the time that happens the company will be well down the track towards prosperity and therefore, whilst a big dilution, it'll just be taken in stride as money begins to roll in.

VML Price at posting: 1.0¢ Sentiment: Buy Disclosure: Held
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