General Chat / Discussion, page-5946

Hi All,

I haven’t posted here in a while as there hasn’t been much to post about, as we have all been patiently and eagerly awaiting the outcome of the mining licence application. The only thing I’ve done in the meantime is buy a million shares at 2.2 cents with a view of buying more stock if it continues to fall in June from any tax loss selling or impatient holders. 70-80 million enterprise value is good upside if all the pieces come together here.

Investors are pretty much giving away this project on the basis of fear in my opinion (uncertainty and worry about the licence). From all reports, we have a great relationship with the government and local communities, which places us in good stead for approval (We have high ethics and integrity at the top so a good spokesperson to be dealing with government delegates. Don’t forget, Uganda needs these type of large scale mining projects to stimulate their economy (stable employment and ultimately reliable collection of income taxes over 50 years at a minimum).

Yes rare earth prices have come off the boil in the last 6 months but investor sentiment has also been overly pessimistic, which is a good indicator for me to buy. The market cap is also low relative to our future value. In my opinion, we have the right man at the helm to get us into production (less than 5% of explorers make it that far). Management are one of the most crucial components to make money over the long term, I have seen many stellar projects on paper go no where because management are incompetent, there are some managers who are explorers but then there are some managers who can explore and become a producer. Buy the latter.

MEI which acquired an ionic project in Brazil literally six months ago is trading close to 450 million market cap, it has been on an incredible run. It has gone on a run from 2 cents to 24 in less than 12 months (albeit with rare earth prices being down from six months ago), sentiment in that stock is overly bullish (alarm bells). Please keep in mind the stock is not the company and the company is not the stock (don’t get fixated on the share price, get fixated on value). Always compare market cap to future value.

If I was a MEI holder which I am not I would be very careful as in my opinion you are paying way too much today for future value that may or may not be realised. I know some people who hold both IXR and MEI so congrats on the run to the latter holders but take my sage advice and don’t forget to take some risk off the table and free carry your position (if you haven’t done so already).

One thing I’ve said here multiple times before is if you are simply selling rare earths upstream (raw materials to China) then you are playing the greater fools game. It doesn’t matter whether it is IXR, MEI, LIN you won’t make a lot of money from the mining operation.

That is why I am invested in IXR long term, we have a clear plan to build a bona fide business (mine, refine/separate and also recycle). The sleeping giant is the recycling division in my opinion. If we weren’t doing this downstream process then I would have sold out a long time ago, as there is little to no money in mining rare earths and selling to China (they deliberately suppress and control the raw prices of rare earths which I have explained here in depth in my previous posts. Value is in the eye of the beholder, buy a company that has the ability to change the world. Cheers, CP.