maximus emerging as a major force in iron ore, page-85

Celica,

You wrote this:

"From the BRR interviews with Big Kev, sounds like MXR has the option of Selling the straight FE (with high levels of Vanadium and Titanium) to China or South Africa, or going down the WVL route and further processing to a Vanadium based product"

i think you will find that the South Africans are having trouble with the electricity at the moment and it is expected to last for next 4-5yrs. so there is little likelyhood of ferrovanadium being transported to them.

as for China, the main producers get Vanadium as a bi propduct of fe. The main producer is Chengde, which has a 3mt offtake agreement with AXO, and which has been in negotiations with AXO to purchase an equity stake. You will also find that another Chinese company "RockCheck" also has an off take agreement with AXO for 3mt pa going to 7mtpa by 2013. So the big ferrovanadium producers already have off take agreements with a company that is expected to be in production probably 3-4 yrs before MXR.

in my opinion the only real option for MXR would be to sell the vanadium to WVL. however, before this could happen WVL would first have to need MXR's ground, given that Noble is buying all of WVL's vanadium production does WVL have the capacity to produce more? i doubt they do and if they wanted to it will probably cost a few hundred mill more for WVL to be able to increase capacity further.

Again, with all the extra vanadium coming on the market it could hurt vanadium prices.

so before the management of MXR imply they can do all of these things it would probably be better for everyone to get a handle on just what is happening in the market for this commodity. i think that the magnetite for MXR wont happen unless the other grades are really good and they really do have a huge amount. i think the most sensible and logical deal will be for the vanadium, again the issue will be if WVL wants it. if WVL dont i think no one will, that gives WVL the upper hand.

the issue of transport will also need to be addressed for MXR before they start talking about selling anything to anyone. if the rail line to Gero hasnt been used for 30yrs how much will it cost to get into usable condition? i would think a few hundred mill at least. WVL isnt a big tonage producer so they truck the vanadium to fremantle. again, i think the likelyhood of MXR being a serious ore exporter a very slim, but before i make a final judgement it would be better to wait for the drill results.

of course you would suggest everyone buys before the results to help give the SP a boost, thats your progotive, however i would suggest that everyone looks at the issues affecting this stock.

1. options comming up for expiry.
2. $7m in cash "i saw this in a previous post"
3. same management as FDL

i would expect management to put out as much "well worded and spun announcements" as possible to help insure the options get exercises.

the $7m wont last long if they are going to keep drilling, hence needs in the future for further capital raisings.

the management, in terms of FDL have got the price from $0.01 to $.20 on the basis of having a tenemnet next to FMG. exactly what skill does this require, ie what has management done to add value other than using nearology to help get the price higher? they even raised money and are going to use $4m of the $10m they raised to go look for more diamonds, thats all the proof i need in relation to management.

good luck with this stock, like i have said, i will take a serious look when all of the other drill results come out, "ie not concenrate grades".