I beg you to differ on your assessment toward our investment on NEO Materials (Neo.to). In 2012, Molycorp paid c$1.3b ($1.4b aud) so instead of paying $300m, we paid $150m for our 22% strategic investment. (ps: Iluka currently budgeting 1.26b to build RE processing facility)
HAS is racing to be the first producer on RE. Whilst building processing plant at Yangibana and onslow, she intends to use its mine feedstock to Neo’s advance rare earth processing facilities (in China, Thailand, Germany and North America) to produces rare earth oxides, alloys and magnetic powders. On the latest news Nov22, Neo is building a manufacturing facility in Europe.
The vision for HAS is clear here. It reminds me to PLS being the first in the race, then took over Altura for a song (less than 200m if not wrong). So look at the current demand, the recent government supports around the world on RE, the $ invested to build RE processing plant by companies, I am assessing that our investment on NEO would worth much more in the coming years. so the condition of the notes (3years exchangeable into Hastings ordinary shares at $5.50) even set a minimum target to Charles & the team and surely by then, if things in line with the business plan, we will worth more than $5.50, over a $1b++ company
I rest my case here and continue to accumulate HAS shares.
. I'm not saying history will repeat, but to support HAS (a non-cash generating business for at least 3 years) decision to buy Neo (for C$15/share, was as low as $9 just before Christmas) with 3 year debt that will capitalise into a ~$210M balloon repayment by pointing out the last company to try this trick went bankrupt 3 years later... well, if I didn;t laugh I'd cry.
I try to spice up my posts with a sense of humour but I'd never think of this angle, comedy genius.
(20min delay)