Whilst an old article, the following 2017 article of interest on rare earths is interesting, especially its comparisons. Whilst rare earth are common, getting them in sufficient economic quantities is not is the key point as well.
https://www.mdpi.com/2075-163X/7/11/203/pdfIn the above article I found this comment interesting in italics below on page 6. Basically confirming most rare earth identified resources are low grade (with the discussion on page 7 and 8 also interesting)
"
Additionally, it should be noted that REE resources, as opposed to REE reserves, have not have demonstrated economic viability. Reserves could be economically extracted or produced at the time of determination, while resources are merely an indication of potential economic feasibility, and the global REE resources, therefore, are substantially higher than figures published by the USGS [22] (126 Mt REO). About 27% of these deposits have REO ore grades <0.2%; 55% of projects have REO ore grades <1%, and only 5% of deposits have REO concentrations >10%. While almost all of the current REE deposits in production have REO ore grades >1%, such as 8.8% in the Mount Weld central lanthanide deposit (CLD), 5% in Bayan Obo, and 1.12% in Levozero, about 42% of these deposits are below the medium size, and 76% contain <1 Mt REO. While 5% contain >10 Mt REO, these giant deposits need to be further exploited and developed in the future."
In other words, for non-clay REE deposits it is going to be medium to high grade REE ones that will cut the mustard noting those deposits that have a richer component of the rare earths destined for the EV/magnets market are the ones going to be better off as well (which what VML appears to have). And VML's deposit, especially the mix in the rare earths of LREO a key). The highest concentrations of rare earths typically are in carbonatites btw, with a number of these rock formations identified in the world albeit few sites have enough of this rock type bearing rare earths in commercial quantities to be mined (see above link and at
https://pubs.er.usgs.gov/publication/70138176 ). Bastnäsite is in the carbonatites rock formation group, which is what VML has btw.
Which takes me to VML, reading these threads and the Anns it appears to be a good depsoits, compared to its peers. Anyone interested in how these resources are evaluated, cut off grades and economics of deposits might find this an interesting read below as well, which I presume was written in 2015. I would assume lower cut of grade would now apply given where REE prices are heading and what has happened since 2015, as I assume article linked below written then, but I would also assume lower cut of grades would apply if say have more of the REE's in your mix that end up in the EV/magnet market.
https://www.edisongroup.com/edison-explains/electric-vehicles-and-rare-earths/https://www.leadingthecharge.org.nz/do_we_have_enough_rare_earth_metals_for_evsI will simply only note here that Neodymium is commonly found in carbonatites in the mineral bastnäsite, and that bodes well for VML, and i has to date btw, noting a lot of its Anns look at this rare earth in particular, given this rare earths importance in the magnet market.
https://hastingstechmetals.com/rare-earths/neodymium/The wikipedia page linked below is also an interesting read as well for bastnasite, especially at the end of it where they talk about the process flow sheet for getting the various REEs from ore.
https://en.wikipedia.org/wiki/BastnäsiteNow with China dominating the REE market anyone getting a good REE deposit of the ground I think can expect interest from outside China . China does produce quite a lot of the rare earths market as most know - actually has a monopoly on it - as it produces 90% to 95% of world output and basically predominantly uses it domestically. It then discriminates and actually at one stage banned exports to Japan as part of the South Sea dispute back in 2012 I think and really stuffed up Japan in its electronics industry. Access to rare earths is actually a key to manufacturing competitiveness in electronics. Just look at LYC a few years ago but obviously it is doing well now, because it actually is a supplier to a lot of Japan's rare earths and Japan never allowed it to die because of the importance of rare earths to electronics and the need to remove China's bargaining position in the market. And supplies outside China are required, and this bodes very very very well for VML IMO as well as other prospective depsoits
https://www.asiatimesfinancial.com/chinas-exports-of-vital-rare-earths-drop-62.amp?__twitter_impression=truePoint of the above paragraph - now with the EV market growing, again the role of rare earths will be critical to how much China locks up the EV market. EVs are not simply about lithium, but require cobalt (which many know), but graphite (which some also know) and rare earths (which many are not aware off) as well. VML's low capex cost and decent mix of LREO, and therefore likely decent prices received, I suspect means going to have a decent IRR outcome here (but need to work out some opex data before I can confirm that in my own mind).
As a final point
@rattle, you come across bitter after selling out ADN to early IMO. As a holder of ADN, I recall your blabberings over there before and when and after you sold out. Holding long term is what gives a benefit is my point, provided you pick the right stock. Point of this paragraph, the similarity here to ADN is low capex cost and shortfall in market, good prices and low opex costs which yields a high IRR - yes I know ADN is into kaolin/halloysite, a completely different product to what VML has but low capex, good opex, good prices mean good payback periods is the point. For VML, question of opex here for me as trying to work out if they have published any such data, but suspect it will be ok, meaning the IRR here for VML is likely to be quite good too IMO which is the crtical aspect of payback/IRR when upfront capex is low. When I get across some data may post further a IRR/payback calculation. Have a small holding, bought only last week LOL before the CR announcement so should have waited I guess but comfortable with the purchase, but will scale up once I understand further the goings on here, but at a high level VML looks a promising deposit IMO
Anyway, positive most of you know the above - just turning my mind to this deposit at the moment. For the record also hold a clay REE deposit, so diversifying LOL.
All IMO
(20min delay)