AUZ 7.69% 1.2¢ australian mines limited

Ann: Flemington Scoping Study advances project to PFS phase, page-113

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  1. 381 Posts.
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    The issue is not necessarily awareness (that may be true ...but that can be overcome), the issue is Scandium is very expensive. Take the Aluminium Scandium alloy (0.2-0.4% addition of Scandium to Aluminium is thought to raise the strength of the corresponding alloy to that approaching titanium).

    Price of aluminium: US$1850/t
    Scandium content/t: 0.2-0.4% (or 0.3% at midpoint). That's 3 Kg of Scandium required per ton of Aluminium. At $3000/Kg, that's $9000 worth of Scandium. So compared to $1850 Aluminium, the Al-Sc alloy would cost $10850 atleast (ignore the processing cost to make the alloy, which would raise this even further).

    How do you justify 6x increase in material cost just for extra strength? Maybe you do if you are making a high end aircraft or jet or golf equipment or tennis equipment ....where buyers can pay up...but for mass market usage or wider specialised usage, ...the price of Scandium would have to fall by multiples for that to happen...It's a good material but its usage is much further in the future to be of value in valuing current businesses. At best it is a deep out of the money call option.
    Last edited by BreakingBad01: 18/03/17
 
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