I suspect CR price will be in the region of 10-13c. Short-term MEI might bottom out around 8c, but anything under 12c is an absolute steal. Hoping MEI seeks out higher-grade areas to drill out leading up to December's PFS which undoubtedly exists. Capex in the PEA seems quite high but I have no concerns regarding financing. Michael at Geoinvest Insights provided his always fair breakdown on YT of what was indeed a rushed-out-the-door PEA, which is fine for this state of MEIs development. Perhaps walking towards the PFS stage instead of sprinting would be a wise move for management. Many lessons to be learnt from PEA/current SP and today's CR at a price point management clearly wouldn't have hoped for.
The Geoinvest Insight video hasn't been posed on the MEI HC thread which is unusual but I understand why, it's weighted towards being somewhat negative. Michael always posts his breakdowns but hasn't as he has admitted to being a shareholder, (internal conflict of interest I suppose). Quite silly IMO as no individual can influence a company's SP/sentiment, unless you're Buffet or Dalio etc.
I will highlight the major concerns in the video that affect project economics in a more hopeful light. Brazil's corporate tax rate is 34% and other minority interests hover around 6% which eats into 40% of the project. While this is significant, I believe Brazil's government will provide tax incentives to build out their REE sector/desired global market share while providing significant employment opportunities. I'm operating under the assumption there will be between a 0%-15% tax rate placed on Brazilian REE companies over a 5-year period, likely beginning in 2026/27 which aligns well with MEIs project timeline and overall economics.
Months ago I mentioned on HC my entry price would be 12c which was met with "your loss, won't ever happen, etc..". I will finally be making my entry next week and expect my entry price to now be 9-10c. Again, anything under 12c is literally a steal, and over 17/18c is a premium atm but not LT obviously, IMO.
The only noteworthy concern I have with any Brazilian REE hopeful is the sovereign risk factor, but the more REE players that pop up in Brazil the less of a concern this becomes to me. (ALL IMO), GLTAH... BUY, BUY, BUY! Next week will present a significant opportunity for current and planned shareholders.
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10.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $235.2M |
Open | High | Low | Value | Volume |
10.5¢ | 11.0¢ | 10.0¢ | $722.6K | 6.947M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 454000 | 10.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
10.5¢ | 367444 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 454000 | 0.100 |
6 | 470786 | 0.099 |
4 | 269148 | 0.098 |
4 | 316996 | 0.097 |
3 | 131163 | 0.096 |
Price($) | Vol. | No. |
---|---|---|
0.105 | 367444 | 4 |
0.110 | 936256 | 12 |
0.115 | 619224 | 8 |
0.120 | 936609 | 9 |
0.125 | 316370 | 3 |
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