Silica Sand prices for low Fe impurity, page-204

"Should we really be dismissive about the emergence of competing silica sands suppliers? VRX's massive resource notwithstanding, PEC, DRX and MLM claim to have supply of high-purity silica lasting for multiple scores of years. In the case of DRX and MLM, they're adjacent to the world's largest silica sands mine that Mitsubishi have operated since the sixties. You would think that Mitsubishi are the prominent supplier of high-purity silica into the Japanese market, if not the global market. It must be a distinct possibility that Mitsubishi can acquire DRX and/or MLM if needs be.

The advent of ample supply of silica sands can significantly reduce the price of the commodity, and this will be exacerbated by VRX commercialising its massive resource. So perhaps the rosy economics of projects such as VRX's (and its competitors) are not as solid as we might think?"

Sound contrarian discussion is good to see @jomo. As is always my mantra, I'd encourage you to DYOR.

When you do, you might come to the conclusion that both DRX and MLM have serious logistics constraints in getting any serious volumes to market, both from an environmental angles as other have said, and from a transport perspective.


As for the rosy economics, you can always refer to the margins in our announcements, then take a look at the graphs I posted late last week - as well as Bruce's comments at the AGM and elsewhere: he's working off of a $20-$30/t margin in his figures. Projections are that this figure, when it comes to a high grade export, could be off by a number of multiples.

All IMHO, of course. But the receipts are out there.

GLTAH