There are not many companies who offer optionality.
Having an advanced pre production mine, as well as patented technology to recycle and repurpose magnets to oxides is rare, excuse the pun.
I am happy to be corrected, but I do not know of any other operators in the RE space, lithium space, or any other EV mineral space using this approach.
Mining, recycling, refining...
We can certainly see the holistic approach Tim was using, for the developments of a complete supply chain. He certainly was setting up the company structure, to take the company forward on multiple fronts.
The RE price has not been playing ball through this, which is making it difficult for his plan to get traction.
However, there are green shoots in RE pricing, and we have been on a steady uptrend over the last month.
Traditionally, September and October tend to be the strongest months for pricing in RE's, and with a strong lead in August, the trend is tipped to continue.
SMM 16th Aug
This week, driven by the concentrated bidding of major magnetic material companies, Pr-Nd prices have generally shown a strong trend. With the "September-October peak season" gradually approaching, can the rare earth market continue to rise?
In August, the rare earth market continued its previous strong trend. This was mainly due to the MoM increase in downstream orders for magnetic materials since the end of July. As the rare earth market gradually enters the peak season, the extent of improvement in end-user demand will become one of the important factors affecting rare earth price fluctuations.
According to SMM, previously, upstream holders were pessimistic about the market outlook and actively sold their products, resulting in reduced inventory levels for traders and separation plants. Meanwhile, orders from downstream magnetic material companies gradually increased, and since the second half of July, the rare earth upstream supply began to experience a supply shortage. So, we may be entering a price environment where institutional investors become more supportive, particularly with the beginning of the rate cut cycle almost a lock in September, which will be the first of many, and translate to many markets worldwide.
EU policy continues to be supportive, as well as the UK and Northern Ireland governments/ministers, who I envisage will remain champions and sponsors of Ionic Tech.
Additionally, the EU CRMA seems to be finally gaining momentum, with multiple companies now lobbying to become strategic partners, which I would imagine we would be a front runner.
We are also seeing supportive protectionist government policy, with the EU penalising Chinese product via taxes and tariffs, stretching their financial viability, and attempting to curtail any price advantage.
Our situation and placement in the market and supply chain, is also buoyed by the Chinese taking state control of their RE sector, in little over 2 months.
They have banned IP and seperation tech leaving China, and have previously banned exports of Gallium and Germanium, with more tipped to follow.
Some western military contractors, also have had bans placed upon them, notably Lockheed Martin.
And as the rate cut cycle is widely forecast to pivot capital back into smaller caps, we may just be sitting on the bargain of the year here.
There seems to be so many tailwinds in IXR's sails, that the SP beggars belief.
Chinese state control, supportive CRMA, EU tariffs, local government support...and now a mildly rebounding RE price, and a capital investment supporting macro event in rate cuts.
Are we the only ones who see this data and can connect the dots?
Are we the only ones who can see when in the not too distant future, when these dominos begin to fall, there will be no stopping us?
Are we the only believers, who can see this all coming together?
For the time being maybe, but it wont be long before the they ALL see it and all want a piece of IXR and their tech.
As I said, this is not for the faint hearted, and faltering at the final hurdle remains.
Tim would definitely be feeling the indomitable sword of Damocles, suspended precariously above his head.
But with that fear, will come the strength to back himself and the company, and do whatever it takes to get things done.
And when those dominos fall, you certainly want to be aboard this train.
Best of luck everyone.
(20min delay)