Great analysis!The most important point about SVM, in my view,...

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Goldexplorer

329 Posts.

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18/03/22

16:14

Post #: 60280799
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Originally posted by Galena72: ↑

Really important to understand the global rutile market supply and demand

The market was in deficit throughout 2021 and prices rallied hard

Then Ukraine went offline 3 weeks ago - they are 15% of global supply - the longer they are out the bigger the supply hole

Rutile is going well over US$2,000 per tonne and maybe to $3,000 per tonne. (Don’t be anchored by historical prices - thermal coal has gone from $70 per tonne two years ago to over $420 per tonne last month).

SVM is the largest source of new rutile supply

Iluka, Rio, Anglo, Tronox, etc will all want it

They will pay ~$1bn for a multi generational world class rutile resource that gives them dominance. Especially as it is a lower carbon approach to Iluka’s high carbon synthetic rutile, or Rio’s (possibly even worse) slag approach

All mineral sands markets are now in deficit - (Ukraine was also 5% of global ilmenite supply) and mineral sands developers with Rutile, Zircon and Ilmenite such as IperionX (IPX) etc - are going to rally hard in this pricing environment once investors fully understand the dynamics

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Great analysis!

The most important point about SVM, in my view, is that the company has the highest in-situ value per ton compared to all other mineral sand mines in production or even the projects that are not yet in production.

In addition, the project is so large and with the different high-grade blocks, a large producer would have a lot of options and would be very flexible. They could produce 120,000 tons of rutile per year or 200,000 or 300,000 tons. I think that's a perfect fit.

And on top of that, there's a rail line right next to the project that takes the product to the port.

SVM Price at posting: 52.0¢ Sentiment: Buy Disclosure: Held
7 Upvote

2 Great analysis

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