Ann: Royalty Funding Completed, page-45

I believe the PFS was delayed due to shortage of money. It's hard to progress a PFS on no money. But the money is there now. So now they can get on with it.

Will the Altradius letter be useless? maybe?- especially if they go for the cheaper N.Ireland plant. Will they get government export funding from UK? maybe? or a loan purchase type deal? There are many ways to buy plant.

If the PFS shows anything like the SS, did - that HVY can invest around A$100 mill or less and get a potential post-tax profit of A$40 mill a year for 20 years LOM - and if they then get some serious offtake agreements - then I belive money will show up to fund them.however it comes Rayalty funds, bank loans, CR, grants ,pre-payments on offtakes.etc.

So the main point then is - will the Price for Almandine Garnet stay high to make it viable ?- and like all commodities, that's in the hands of the gods.

I think it will -due to the current shortfall from India's recent banning of sand mining. that's leaving about a 500k ton hole in the market which is currently about 1.8 billion tons a year. hence the price is rising, Im also informed that GMA mine after 40 years -and I believe the world's biggest supplier is also suffering from depletion issues. Its not easy to come on with that much more supply.

will demand remain constant or grow?
Garnet Market analysis papers show an expected CAGR of 6.5% for the next 15 years. That should hopefully sustain the market price. (but as always we just don't know- that's the risk)

I am informed that The biggest garnet buyers for sandblasting are the US Navy which takes almost 40% and Saudi Aramco takes around 15%. The US Navy's ageing fleet needs to be maintained, Plus if Harris wins in US and the huge multi-trillion infrastructure bill continues -IMO that's going to lead to a big increase in garnet demand to repair all the old bridges etc.

how about supply?
looking around intelligently, I'm not sure where new supply will come from in this region to fill the current shortfall gap due to Indian supply falling off? - more from Aus?, (say when RDA ramps UP) some on NZ west coast? and Sri Lanka or Burma? Does anyone know of any more potential new mines coming online?

So I generally feel the garnet price should remain buoyant. Today to my knowledge from metal trader friends the average price is around USD 550 a ton (or A$ 810) HVY SS presumed an average price of A$750 I think - so there's a 6% increase - which multiplies on into post-tax profitability.

As for the Next Investors write-up - its quite informative - but I also noticed that 2portfiolios have also done a write-up on HVY. They are another stock-picking group. I follow them more than NI as NI writes up any company that pays them. But 2portfolios work from members' subscriptions so tends to be more picky - they have had 14 1000%++ calls in the 4 years I've been a subscriber. 2p called HVY as a buy at five cents about a month ago - .IMO I think that's what turned the market?