Ann: Takeover Update, page-2

Here's something of note for MDL shareholders.


Eramet Full Year Report - Dec 2017. (Page 34 - TiZir).



Obviously a quick look at that graph shows that Eramet believe there will be TiO2 supply issue come 2020/2021 and a significant one come 2021.



Here's the translation of that page (I have bold underlined the section worth noting).

ZIRCON MARKET

Zircon is used in particular in
ceramics as an opacifier, conferring
to them a shiny appearance and a surface
smooth. Ceramic tiles or
washbasins in bathrooms contain
zircon: zircon sand is finely ground
then added directly to the preparation of the
ceramic and enamel.
This mineral also has properties
refractory very important it is so
used in some industrial segments
as a mold element in the foundry
high precision. Chemical derivatives
zircon are used in a multitude
applications such as abrasives,
wear resistant or even some
catalysts. Finally, zirconium metal is
used particularly in the nuclear sector
and constitutes the protective envelope of
fuel rods (very resistant to
heat and permeable to neutrons).

Use of Zircon:
■ Ceramics 52%
■ Chemical derivatives 20%
■ Refractories 15%
■ Foundries 12%
■ Other 1%

The main producers of zircon are
Crystal, Iluka, Kenmare Resources, Rio Tinto,
TiZir and Tronox.
As with titanium dioxide, the
zircon market experienced at the beginning of the
decade a period of very high prices and
of tension in the physical market. This one
has been accentuated by behaviors of
storage throughout the industry.
In 2013, the movement reversed. A
phase of destocking and significant decline
courses has characterized the market on the essentials
of the year, while production capacity
continued to increase and that some
consumers have adapted their modes of
consumption on a technical level for
optimize their use of zircon (substitution
partial). The price of zircon remained
relatively stable in 2014 and 2015 before
to fall again in early 2016 following a new
lower demand for production
of ceramic tiles in China.

Prices rose slightly in late 2016
then beginning of 2017 but in the second quarter,
stocks at the producers are now
very low, robust demand and stable supply
have caused a sustained increase
prices to reach at the end of the year a
increase of about 35% compared to
average level of 2016.

MARKET OUTLOOK

The beginning of 2018 looks promising
for all markets
TiZir products:
■ the actual demand seems robust with
average multi-year growth rate
between 2% and 3%;
■ stocks are low;
■ the supply does not grow, for lack of any new
projects and because of the political
environment in China that compels
volumes at some producers.
In the longer term, the market outlook
for mineralized sands are favorable, making
show a supply deficit compared to the
as shown in the following graph.


So what is then?

You are telling MDL holders there is uncertainty in pricing and supply volumes, but you tell your shareholders that TiZir has a very rosy future.

Eramet,
$2 plus, plus or pack up and go home, holders are not interested !!!!!

MDL Holders
I know that Eramet are in Melbourne doing the rounds of the biggest holders. I'd be betting at $1.46 the discussions will be brief.



P