I'd just add that the Seren acquisition is subject to a DD by...

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hoodle

1,271 Posts.

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21/01/22

09:25

Post #: 59030373
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Originally posted by hoodle: ↑

@setfire2thehive thanks for the great analysis as always. I originally entered at 0.9 after reading every post you'd put up and then doing my own research. I've added to the position at de-ricking events. I owe you a nice bottle of your choice and am very grateful for the open source info share.

I'd add two points:

1) in almost every industry that has every existed, the closer you get to the end customer the more margin you make. And usually substantially more margin. I've always liked IXR, the deposit, the strategy, the RE space and the management. What has come out the back end of all that, which sets IXR apart from every other play, is that they will have a low cost, low capex, long life, low strip mine, that will provide product to their own in house refinery, that will provide product to make magnets in house. You can't get closer to the customer. At each step IXR will make great profits. This will be an ex-China supply chain

2) every business's long term success is based on it's Sustainable Competitive Advantage (SCA). This is the defining element that gives you an advantage on your turf over anyone else. Or when the crap hits the fan, you know you will be the last one standing and can survive when other are squeezed out. IXR have the mine SCA because they will be one of the lowest cost producers. They have the separation SCA because they have a very low cost separation technology. They have the ability to make RE magnets. And finally all this is pretty unique if you are like the USA and mandating an ex China RE supply chain.

It is highly probably that many on here will be pulling out annual dividends in the back half of 2020's that are larger than their investment, and that their capital growth will have been over an order of magnitude greater than their investment. Some will have many orders of magnitude return.

I'm expecting many fluctuations on the way, but barring some unknown unknown from left field, it is by far the best pick RE on the asx for me.

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I'd just add that the Seren acquisition is subject to a DD by IXR which will end in a few months. Given Tim's field of expertise, and the Directors of Seren's expertise, I'd say the deal has an extremely high lowlihood of succeeding, however anything is possible. If it succeeds, it is a cracking fully integrated mine to magnet business outside of China, if for some reason it fails, the deposit is still by far the best on the asx and undervalued imho. GLTAH.

IXR Price at posting: 7.2¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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