Welcome all to ASM! You have until COB 20th July to buy ALK...

Welcome all to ASM! You have until COB 20th July to buy ALK shares to be allocated ASM shares, or otherwise get ready to buy on market!

Feom the demerger booklet:
The strategy of ASM is to create value for ASM Shareholders through advancing an integrated business that includes the Dubbo Project and related technology that results in the production of critical material oxides and metals. Together with Korean joint venture partners, through its investment in RMR Tech, ASM is currently commissioning a "Clean Metal" metallisation pilot plant, with commencement of operations expected in Q3 of 2020.

ASM is progressing testwork and engineering focused improvements that integrate "Clean Metal" metallisation into the business strategy. The commissioning of a commercial metallisation pilot plant is nearing completion and the initial focus of producing zirconium, neodymium, praseodymium, niobium and titanium metal. This strategy incorporates the use of a 1 Mtpa flotation plant to improve the ore feed grade and a 0.5 Mtpa solvent extraction plant to process the higher-grade feed that is expected to deliver a lower capital cost and improved financial returns to the Dubbo Project. The results from the recoveries of the flotation work and the initial metallisation pilot plant commissioning will be delivered by Q3 of 2020.

ASM continues to progress financing, off-take and strategic partner initiatives with various parties. In March 2020, Alkane announced that Export Finance Australia (EFA) (Australia’s Export Credit Agency) had confirmed its interest in participating in the financing consortium for the development of the Dubbo Project, subject to the finalisation of normal due diligence, acceptable financing structure and the Dubbo Project meeting the EFA’s eligibility and credit requirements. ASM continues to liaise closely with the EFA and other Australian government departments in relation to financing and other support.

The Dubbo mine has a 75 year life span and the original 20 year base case had financials of:
1.0Mtpa
Capex A$1.38b
Revenue A$663m
Operating costs A$341m
EBITDA $320m
IRR 17.5%, NPV A$1.24b

With the option to build it on a modular basis with financials of:
Stage 1
0.5Mtpa
Capex A$808b
Revenue A$397m
Operating costs A$202m
Stage 2
0.5Mtpa
Capex A$692b
Revenue A$663m
Operating costs A$341m

My gut tells me with the EFA sniffing around, China's games continuing, governments (Aus, US, India to name a few) wanting non-Chinese rare earth sources, the South Korean progress, etc etc, that now is the time for ASM.

Goodluck All!