$1.5M aud initial investment is not inconsequential (pending how...

$1.5M aud initial investment is not inconsequential (pending how much of the option is exercised will be the interesting last).

Will reserve my judgement based on how much is taken performance options and shares fairly neutral some easy some not so easy.

Equation for IXR still remain fairly binary for me. Makuutu needs pricing point to increase to attract market value. Main market valuation imho attributed to downstream processing refinery business and magnet recycling business. Both of those can be profitable at any REO price because your input costs decrease in line. So aslong as you can toll process third party material cheaper than its costs to do so.

That is how most of China remains profitable is that they own most of downstream processing, be it lithium, rare earth etc. So if the raw material input cost drops they can always still make a margin on the downstream processing and refining aspect.

I like the end to end supply chain angle, but imho still need REO pricing to increase in makuutu is to be the raw supply feed into the refinery. They could afford to run makuutu at a breakeven if they can make money post seperation. But at current REO price makuutu would not be breakeven and I think any losses would offset downstream processing.

Still make logical sense to progress the asset if they believe the long term pricing of REO and improvements will bring it into that spec or even profits - but do believe the downstream and recycling aspects should almost be primary focus given their economical viability is much less impacted by the fluctuating REO price. This is in line with my assumption/statements a while back that ixr would be known more for these aspects than the mine itself. So to me that remains the key pathway to commercial success. Makuutu is at the mercy of the REO pricing along with many others, or alternatively a significant premium being paid for ex-China supply. Unfortunately that doesn't exist just yet as far as I'm aware. Only a few mines could be profitable at this price, the lynas quarterly is a good yard stick showing even its viability is questionably with prices this low, and yet considered one of the best REO (hard rock) deposits globally. Can't see prices staying this low this long IMO if even first quartile producers are on the brink there's usually a supply/demand squeeze in play. same happened with lithium a while back.

Hope everyone is well.

SF2TH