HI 2IC/Salpetie can you please help me out and bring this back to basics for me as I am so confused. At the risk of over sharing i have thrown it all at DRE with high hopes but your insights have given me a few sleepless nights. I am well in the red, but I have time to wait it out but just want to clarify that my simple thought processes are logical so I dont panic, If you could offer your thoughts on the below in a dumbed down manner that would be appreciated. This is what I understand:
1. In terms of REE, in the last couple of presentations given by DT he has stated they are looking to drill out a 30 to 50 MT resource only. In order to get there, DRE have 14 MT already at 3 Kms of the 43 KMs and although not guaranteed, I am assuming it is a fair expectation that this will be met even if Yin was the best starting point? On this basis alone, coupled with the second mover advantage referenced on several occasions in terms of having an economical product the current MC is fair value on a standalone basis? 2. C3/C6 are still unknowns at this stage but possible upside. 3. HAS may offer potential processing opportunities but DRE having gained the economic viability from their initial flow sheets, DRE are not tied to their success and have other potential partnering options and what happens to HAS is not necessary relevant? 3. Elon Musk development work is currently the biggest potential risk to mine life and future value at this stage. I saw the term binary used and agree with the outcome if it comes into play but would expect that timing is key. 4, MY expectation/hope is that given the speed of DRE exploration, that in 12 months time the focus will have shifted to one of the other 3 key projects and if point 3 comes into play then depending on exploration results and what is the eventual outcome with Mangaroon REE, the impact to MC could be insulated by other positive results or non-existent if divested prior. Of course no further exploration success could occur. Or if point 3 plays no part in this then its possibly just an upwards trajectory.
I know this is simple but just my thought processes in relation to continuing to not panic whilst in the red. Is this a fair assessment at a high level do you think?
DRE Price at posting:
6.8¢ Sentiment: Hold Disclosure: Held
