Lots of great information...
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It all looks very positive, and destined to head to commercialisation.
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What they have achieved in Belfast, is undeniable.
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Belfast as a location, sounds ideal.
Enhanced economic zone, Windsor framework and other tax and financial incentives to trade into the UK and EU has positioned Ionic Tech in one of the most favourable locations in Europe.
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Then you have the port of Belfast and the 12 acres they have nabbed in the Titanic quarter, as another advantageous location for commercialisation, logistics and proximity to market, including wind turbine manufacturing, decommissioning and the green wind energy hub.
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Tom Kelly seems to be doing a great job at Ionic Tech.
You can tell they are proud of this home grown Tech, developed out of Queen's University, and to be be developed and commercialised in Belfast.
The processes there are going very, very well.Personnel and skilled labour are something many companies do not talk about, but even this seems in abundance, with the graduate program we have coming out of Queens University.
It seems we may own the Tech, but they still have an attachment to it and consider it as their own.
That passion and personal investment is priceless....you cannot put a value on that.
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It is now clear the process can be geared toward Terbium and Dysprosium, and we can dedicate feedstock to primarily increase and target the recoveries of these high yield heavies.
Even the Current Ionic Tech NdPr Oxide production is earmarked to go into a batch of wind turbine magnets.
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They have also done lots of work around feedstock and supply chains, building connections and relationships through the industry, to position us as the first movers in the UK, and one of the first in Europe.....slotting us into the supply chain.
I guess you all saw how advantageous our position is at Belfast harbour, and I really can see us slipping in, and being a part of an independent, secure, traceable, ESG friendly supply chain.
This first mover advantage should put us at the head of the queue for support and funding, position us as part of the solution for the EU's CRMA mandates, and become a pivotal link in this energy transition.
We are on their radar and we are on the map as a known quantity.
And we can do all this WITHOUT A MINE.
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So, it seems all systems are go, the pieces are falling into place strategically, building to the final piece of the puzzle, to transform this from plans to reality.
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Funding.
Funding..
Funding.....
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They have skirted around the topic-
APC
ATF
Ford
LCM
BGS
UK Innovation fund
Financing options
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The EU NEED us to to be part of their 25% EU critical minerals recycling target Mandate ...
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And although I do believe it is coming, I did not see any meetings with ministers this trip, any mention of government interaction for funding.
The labour government just coming into office, may have actually been a difficult time to engage with them.
Every man and his dog was probably at the government's heels when they visited, making access difficult.
Ok, lets park that....and I would expect another trip when things settle down, to finally cement an outcome, wether with the government or our partners.
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As for the UK governments involvement in the rare earth space, I think we are part of a select group
I couldn't find any other rare earth play they are engaging with to this level, post demo and heading into commercialisation, other than Hypromag, who deserves and honourable mention.
It may not have eventuated this trip, but it will in the future.
As we have surmised, they are probably waiting for further derisking, before fully committing....consistent production...PFS numbers...commercial site....of which we are nearly there, to present in a neat little package for them to sign off....
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One other thing I picked up on is this PFS.
I have heard this kind of rhetoric before.
Brett said-
The study will be a discussion tool for key stakeholders....
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Generally, Stakeholders do not like any sort of disclosure while in discussion and negotiation.
They do not even want to be named....
It could be nothing, but last time I heard similar terminology, the study was kept underfinal drafting, until deals were worked out with the prospective partners.
There will be figures and metrics in there, that they do not want to disclose to market for strategic reasons, until all details are worked through, and the deals are signed and cemented.
Derisking for commercial viability, Finance amounts, funding amounts, equity stakes, debt to equity ratios, tax incentives etc..etc...it has to be worked out as a package to maximise the benefit to the company, the shareholders and ensure the greatest runway for success for all stakeholders.
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Typically, a BFS/DFS +-15% tolerance, is required to be completed for funding and FID. Thats generally what the banks want to see.
We are at PFS level +-30% tolerance, then heading for FID, which is a little unusual, and I would understand if it is, 'under final draft' for a while, while discussed with stakeholders.
I take this as a positive.
They are talking to people and want to get this through as fast as possible.
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If this is the case, it may be why we haven't seen it yet, and may not see it for a while.
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As previously stated, I could be reading too much into this, but I also would not be surprised to not see the PFS for a while....but when it comes, it comes with a deal.....or funding or a commitment...
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The other key take away here, is that i believe we are being positioned to be an industrial minerals company, not a miner.
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The messaging, rhetoric, demeanour and language, is pointing clearly to this outcome. Lynch said as much...
To me this means, all else is of secondary importance, and will be used to facilitate this transformation from miner to industrial minerals.
I have mentioned this before, Makuutu commercialisation may not be realised by IXR, and may be divested.
So too the grand plans with Viridis, although I see our equity in the company as the casualty, to fund the company, with the JV to continue in the long term.
And maybe not full sale of VMM shares, but the majority, particularly as the sp trend is down.
If it's on the cards, you need to sell now, before further decline.
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As for a CR, I don't see it, not soon, and not willingly anyway.
Of course it could still happen, but It would be an absolute last resort.
We all know what the repercussions of a cr would do to the company, and it's current board, and I don't think they would survive it... that is if anyone would give them the money, under the current circumstances.
Markets are tough...
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I think we all get a sense of how close we are here to going to the next level.
They need to find a way to get us there, they need to find a way to make it happen....
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I think they will get us there, but for the moment, without knowing the finer points, the future of the company is finely balanced on a knife's edge.
Waiting for further funding, finance, offtakes and deals.
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Having said that, there was very definite messaging around the future beyond Belfast.
Talk of other partners and sovereign states, particularly the DOD and the US, showing interest, with a possible tie up in the future.
Sovereign capability and a future role out of our tech through Europe also seems on the cards, if we can get through the next few months. And defence contracts can be very lucrative...
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So, batten down the hatches, scrape up every penny, minimise cash out flows, cut non essentials.... Be the biggest tight arse you can be...unashamedly tight.
And make that money last until we crunch a deal, get some finance or get some funding.
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I am hanging around and holding, but there's still risk here, so I would begrudge no-one for wanting to sell.
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The info we have been provided is certainly compelling, and the narrative coming through is one of positivity and a commercialised future.
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Lets hope this positivity is one based on a strong foundation of hard work, belief, progress and support, that is working its way from the background to the forefront which will soon be the announcement we have all been waiting for....
The one that finally propels us from a start up to commercialisation.
(20min delay)