knock-out criteria for ree stocks, page-3

Hello Tonio,

The economics are simple:-

Produce a concentrate and receive up to 30% of the basket price .. say $72kg x 30% = $22kg ; .... 3,000 t x 1000kg/t x $22kg = $66M

Produce a carbonate / mixed rare earth oxide and receive up to 80% of the basket price … say $72kg x $57 ; .... 3,000 t x 1000kg/t x $58kg = $174M

So by increasing the capital expenditure by $40M to construct a hydromet. plant – they may possibly be increasing the gross revenues by $108M

Looks like a good trade off to me

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As for the concentrate grade, the higher the concentrate grade the better IF you are selling the concentrate to the Chinese

However if you are feeding that concentrate into your own hydromet. plant then you “optimise” the concentrate grade to achieve the best recovery from your hydromet. plant

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Most informed shareholders are already aware of the above points

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Jack Lifton on 23 January 2014 said:-

China is short of dysprosium and yttrium and cannot increase production due to:-

A. Environmental pollution from its “mining” technology for extracting the heavy rare earths from their adsorption clay deposits, and

B. The overall reserves of as yet unprocessed adsorption clays are considered a strategic and critical resource for Chinese economic and military security and are to be conserved. -

See more at: http://investorintel.com/rare-earth-intel/china-currently-severe-overcapacity-oversupply-domestic-rare-earth-market/#comments
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China the consumes around 80% of the worlds rare earths, so where is China going to get their dysprosium and yttrium from, .... my guess is that NTU will play a part as a supplier of a mixed rare earth oxide in the not too distant future

The future looks bright,
the shares are held tight,
and production is now well and truly in sight.
best to 99.62% of NTU shareholders ….