I’ve been ignoring IXR for a while. They needed time to execute...

I’ve been ignoring IXR for a while. They needed time to execute and market sentiment is foul. I have about a third of the position I would like in this and started buying again on Friday. I intend to keep nibbling. Market conditions are likely to be remain uncertain but you always need to look ahead 12-18 months as Stan Druck always says.

With prob $10m cash left, the next 6 months are binary - success or fail. Looks to me that the odds are strongly in favour of Success. I’m not a TA but the chart looks ripe given catalysts ahead. It may sag a while longer though given poor sentiment.




I can’t see how IXR will be left to fail. Security of supply is at stake for Defence and Electrification. The only question is the terms for Success. Strategic partnerships are the way ahead and governments will want this to happen. Time is the main uncertainty. We may have to pass the hat around to maximise the outcome. Board and inside shareholders are key here (and a key uncertainty).

Stacking it up:

1. Strong operational, technical and scientific team (recent COO appointment is further evidence) = most important factor. (Board - not sure)
2. Demonstrable proof that REEs (mined and recycled) can be separated economically with high ESG credentials - a scaleable, modular, speedy process with low capex and opex - truly unique
3. Recycling capability helps immediately unlock circular economy solution for EU and US - plenty of used permanent magnets around (unlike Lithium)
4. Substantial resource of highly sought after HREEs albeit in a less attractive jurisdiction. But it’s not China and Uganda seems to be goal-aligned (new COO has a strong track record in this area and IXR has executed very well so far). Even if this gets stuck, recycling should get us through.
5. Geo-politics - US Defence requires non-Chinese supplies. No question. All the fuss over manipulated ex-China pricing misses this point. Security is now firmly ahead of price.
6. Exponential demand for wind turbines and highly efficient permanent magnet driven EVs (commercial esp)

It will be an interesting second half. Tim and his team can do it but they need to score some goals now.