There is a need for our products. This is why other companies are signing off taker agreements.
The whole idea was about SK.
Initially, they had the tech, we built the plant there, right next to end users for efficiency in logistics. SK gave us a lot of government initiatives and line of credit. The main bull of Dubbo mine financing was supposed to come from SK through the KCF agreement and them buying 20% of dubbo. The EPC project was going to be done by an SK company (Hyundai), which would then benefit from the mine and sign offtakers with us. A lot of government pictures and embassy etc were involved.
The previous CEO was leading all the above but following missing milestones that essentially rendered the KCF agreement meaningless, he just dropped and left. Frank moon, the Korean guy, a major link also left. And now we are back to square 1 with the mine reserve and a plant without sell.
It would be good if ASM told the market at the time why they were missing milestones and what was going on. Well that’s history and they didn’t. I suspect there problems between IG and the previous CEO. I am not sure and it doesn’t matter.
all in all, no we don’t need a war with China to get sell rare Earth, other companies such as ARU are doing it. We are stuck with a rather incompetent management and a business plan that didn’t workout as planned! Everything is now a few years delayed.
ASM Price at posting:
$1.10 Sentiment: Hold Disclosure: Held
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