Thought I would post the following links as a little distraction to what is going down in markets at the moment - may be of interest to some.
Interesting to see where borate lies on the chart prepared by the European Commission Sept 2017, identifying critical raw materials (CRM) for the EU. Borate identified as one of 27 CRMs, with supply risk and economic importance being the two main parameters determining criticality of raw materials. I was quite surprised to see where borate sits relative to some other materials e.g. lithium.
http://ec.europa.eu/growth/sites/growth/files/graph_crms_2017.jpg
https://ec.europa.eu/transparency/regdoc/rep/1/2017/EN/COM-2017-490-F1-EN-MAIN-PART-1.PDF
ABR address the demand/supply issues relating to borate in their Scoping Study. They note that demand is expected to significantly exceed supply from 2017 due to various growth factors, agricultural and industrial applications, and technological advancements. Good to see the supply risk reinforced by the EC report, to the extent of identifying it a CRM.
I wouldn't think ABR would have too much difficulty securing offtake agreements down the track, given the quantity/quality of what they have and the desire by industry/regions to secure supply going forward. I note from the SS, China has minimal low-grade boron reserves and imports virtually 100 per cent of its borate consumption. Additionally, ABR is targeting production of refined boric acid which is forecast to have a higher demand growth profile than mineral borates.
Hope we don't come under too much further price pressure. The fundamentals of this company are fantastic.
Looking forward to future updates.
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