Hi copperroad,
“The capex required for a concentrator is a tiny fraction of the costs HAS are talking about.”
I’m sorry but I disagree….49.6% of the HAS total capex figure ($948m) is directly attributable to producing a monazite concentrate…. that’s hardly a tiny fraction imo.
Even if you isolate the ‘concentrator’ (i.e., the processing plant or beneficiation plant) part, that still represents 22.3% of the total $948m capex figure…and that’s kind of meaningless, because a concentrator/mineral processing plant requires the enabling and supporting infrastructure to actually work…..so it’s the stage 1 capex figure ($470m which is 49.6% of total) that should be considered as a proxy (in current climate and like-for-like), at least if the aim is to produce a saleable monazite concentrate.
That said, I do agree with you that there are some other options that DRE may look to pursue rather than committing to any sort of development (i.e. eventual capex requirements)…all depending on what the outcome of this years resource and exploration target drilling are.
Anyway, just some more general comments now - I hear the messages from other posters about keeping the bigger picture in mind, or that the REE at Yin and/or Mangaroon at large not being the reason they bought in, icing on the top etc…and I get that, no problem…the project diversity and exploration methodology was the reason I got on board as well, not specifically the REE.
But don’t people also think its important to keep the Yin and carbonatite REE progress and details front of mind given that as it currently stands, they are what is underpinning the company’s valuation and growth direction – by managements own admission, this is what they have said is the current focus.
Doesn’t mean it’s the only source of current value or that this direction won’t/can’t change in time. Of course, any major exploration success that comes on another project, be that the Nickel JV or base-metals in the Kimberly etc has the potential to change that dynamic. But banking on a black swan event is risky business…so, as 2ic clearly states (in many detailed useful posts), trying to understand as much as possible about what makes projects tick can be used to inform on how they may be valued or at least the challenges that they may face...I don't see why discussing these aspects can be anything other than a good thing.
Someone mentioned earlier that DRE essentially stumbled across the REE by accident…that’s a bit of a low blow imo to the fantastic systematic and deliberate geological work that DRE’s geologists did that led them onto Yin…. they went there looking for REE and that’s what they found.
Just for clarity, and before people start jumping up and down for not towing the status quo…
At least from my perspective I still view DRE as a good investment (dyor etc), and there is much from an exploration potential perspective that keeps me very interested.
Do I think there is still potential in the REE space…..yes
Do I think there are going to be significant challenges or hurdles that need to be overcome…..yes
All of which leads towards a high risk, but potentially high reward opportunity.
But none of that means I won’t continue to engage with, and discuss the technical aspects with others – regardless of their sentiment or disclosure status and in this regard, I would echo the previous posts by slick, SharleneD, poodleface and others who summed it up well in other threads.
anyway...glah
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