Interesting article thanks wazza..
Maybe some of our less enthusiastic but technically proficient posters should keep this in mind for some balance. What that analyst is saying may or may not allay any concerns raised by the aforementioned posters but his viewpoint adds weight to the rationale behind the "fools" that remain positive on the outcome of this stock as an investment in the presence of any technical headwinds (of the REEs) that may or may not be proven valid at this early stage.
You can state facts and score technical points on certain aspects of this company's REE deposit if you want to but the name of the game in the end is to make money. Technical perfection is not a prerequisite for this, its the ability to make money from it, which is is influenced by many other factors too, including the underlying commodity price and therefore to a degree, sentiment. All other things being equal, demand, sentiment and the non technical factors can to varying degrees override other concerns. Sentiment is down at the moment for sure, just like lithium a wee while ago and iron a few years before that etc etc.. It'll change again for the better I have no doubt, and judging my many recent news events and articles maybe sooner rather than later.
Maybe what we have found so far does have more infrastructure, processing overhead or waste costs associated with SOME PARTS of it, or maybe not. Maybe it does but it is still economic, esp by the time we go to monetize it. Nothing has been determined for sure yet as far as I am aware, and in any case there is a lot more ground to cover literally and figuratively before the end result can be determined. If we have covered not even 10% of the planned drilling so far, yeah it may pinch and swell, grade and TREO ratios may vary and there is a lot of unknowns but given what we have found so far and how much more is to be explored I feel pretty comfortable where we are at, the targets we have set ourselves and the chances for finding better /more REE. The target is 50mt and we have JORC'd 15mt so far.
If what we have at current prices is still deemed POSSIBLY economic under some negative assumptions by mr second in charge because of its size and or grade, finding similar, bigger or richer deposits nearby on the same ground could very quickly turn the economics in our favour, not to mention if we on the off chance did find a richer or mt Weld deposit or REE prices took a step up.
What we have discovered given the time, money and percentage of land we have explored, being an uneducated fool in the discipline of REE economics, Im willing to back my gambling instincts or whatever you want to call them, that seem to have been very kind to me so far, to keep my dosh in this company and take a punt.
YES!!
Its seems that like lithium and countless other commodities before, price and sentiment has taken a dip along with most other things, prices during these times of bad sentiment may deem certain projects less viable or maybe not even viable at all but in the end the importance of this will be determined by market forces closer to the time that the deposit is more clearly understood and monetized. In the meantime you are either in or out and will benefit or suffer accordingly.
I just dont believe that the demand will be satisfied soon or enough or the Elon Musks of this world will find a way or circumvent the need for REE's to affect demand negatively, other than a general market depression that dampens nearly everything else at the same time, in which case, yes, we are temporarily screwed. In any case, you have to take a punt, nothing is assured or guaranteed. If we wait for it to be gift wrapped and handed to us on a silver platter served with champagne, beluga caviar and kopi luwak its probably too late.
I think this guys article, which is by a long stretch not an isolated view, shows that there is plenty of sentiment and financial upside left in the REEs and DRE. We are at an early stage of defining our resource, yet we still have a REE asset of value despite whatever assumed technical weakness it may have from the small sampled percentage of the total exploration work so far undertaken. Much of the viability and value of it all depends on the price of the commodity obviously, so to write off or diminish the investment prospects from a more technical perspective is to ignore the other sentiment and underlying drivers such as demand and political forces that can also increase prices and have a positive effect on the economics overall . I'm not meaning to bury my head in the sand as to the technical merits or risks at all, but my reason to be here is to make money, and from that perspective I think we have still a lot of potential despite the risks, and think its worth it to remain invested as, it doesnt take much of a change in the other influencing factors to turn the tables quick smart in our favour and justify our decision to be here.. and again, lets not forget, this is just one of the exciting projects with great potential we will sit back and watch unfold. The gold, copper, nickel, lithium, HREE, iron and all the other goodies that may surprise us at any time.
There is plenty more to come and this graph will take another step up I am sure..
Of course there is downside. Without it the upside would not pay as well as it does with explorers but in terms of potential downside vs potential upside? Im obviously pretty happy to be here. Call me a fool, a pumper, or whatever, not bothered but if humanity had not embraced risk and ventured out from the jungles we'd still be swinging from the trees and getting drunk on rotten apples, so Im taking my chances and hanging around here for a bit.
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