pros and cons, page-4

MLM - only Pros

MLM has a MC of $42m and JRV of $10.5.

MLM is successfully progressing to Stage 2 of its scandium project by June 2012, where 1 kg of pure scandium oxide will be produced. After that, MLM can think of commercialisation and scaling up production. 2013 looks like a company maker

Scandium oxide sells for US $7,000 per kg and scandium metal for $18,000.

http://www.mineralprices.com/


By contrast, JRV, although it has a larger in-ground asset, has admitted to financial constraints and has just had a falling out with EMC.


Regarding supply-demand, Dudley Kingsworth notes of rare earths that with greater supply of processed and finished REE product about to come from outside of China (Moly-Neo merger, Lynas), there will be less need for non-Chinese to find substitutes, prices will fall and new applications employing REEs will be stimulated.

With REEs and scandium, processing high up the value chain is the name of the game, not basic mining.

IMHO, MLM management (if they are not already doing so) should be considering a takeover of JRV