ARR 2.17% 23.5¢ american rare earths limited

Things that make me go Mmmmmm, page-67

  1. 2ic
    5,724 Posts.
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    The SS laid out production assumptions fairly clearly, and suggest you take time to read it even. Doesn;t have to be a long slow read, there are good tables that lay out the basics anybody can understand, skim the bits you're not interested in and pay more attention others. I'm not saying it's easy or even possible for everyone to understand what is really going on from the SS, and there are three ways to get information on it:

    The US SS which under their laws requires a warts and all detailed report as actually produced for the company (230 page doc)
    The ASX SS which under our laws can be summarised however it suits the company (53 page doc)
    The ASX Investor Presentation simplified slide summary putting the SS in it's best possible light (26 page doc)

    Someone with the tech knowledge to drill into the 230 page full SS document is at an advantage being able to see beyond any company window dressing in the other two documents, with more revealing data and commentary. Plenty of people have that skill, very few with the time or inclination to post opinions of that analysis on HC, for obvious reasons. I actually looked at a number of videos from a Sth Aust geo on his GeoInvest YouTube channel, and he is one rare example of someone who enjoys and very good with his knowledge and providing investors with a "'20,000m high overview" and opinion for example. Well worth watching because he emphasises the risks and red flags all experienced professionals should be able to pick up from the company results/releases. might be how I might come across if I was a polite nice guy... which I'm not.

    What we seen to have in common though is a love for reviewing projects with technical analysis, and the desire to help people understand the process and pitfalls of considering resource project investments beyond just technical opinion. Teach someone how to fish instead of just feeding them with a fish so to speak. I'm happy to waste my time answering questions and helping people where it suits me, but I like to people trying to helo themselves at the same time.

    So to begin with, answers your questions are laid out clearly on slides 8 & 12 of the SS Presso.

    https://hotcopper.com.au/data/attachments/6192/6192996-ccc8b603ab921ca7ae9fc47e47ca90f2.jpg
    https://hotcopper.com.au/data/attachments/6192/6192999-2787f8851ae4f09e6545b870d241ec43.jpg

    These simple metrics are based on some preliminary testing and lots of guess work, albeit well credentialled guesswork. However, there is so much devil in thew detail it takes some time to analyse and as much to write up in posts. Both the concentrate percentage and concentrate composition are incredibly important, as are the leach recoveries and leachate composition etc.

    The economics of the project is similar, with simple tables summarising the models output, where the real value comes down to how early and possibly too optimistic assumptions are likely to firm up though to the DFS and even beyond. Economic geology is a more difficult and interesting level of analysis combining all the geology overlaid and intersecting with multiple sector, market and commercial implications..., making it a much more interesting (and valuable) problem to solve and why I love it. Economic geology becomes less the inexact science of geology and more multi-discipline artform with a probability outcomes matrix based as much on judgement as technical details.

    No surprise when bulls see me rolling, they hating... Take HAS for example. I've been banging the drum to get out and that shares are going down based on a false and deceptive 2022 DFS and then the Wyloo debt package sold as a "$5.50 Strategic Investment" since $5.50 and the shares are now 25c, approx 95% fall. Yesterday batboy followed me over there with a typical insulting attack post https://hotcopper.com.au/posts/73910229/single whhile today a previous true believer makes the following post like nobody had ever pointed out some very obvious flaws and risks...
    https://hotcopper.com.au/data/attachments/6193/6193118-706636d75c52c5e964ea1d4d54149cd6.jpg

    That's not to say HAS was a foregone conclusion, but the bear case was ultra compelling. That's not to say ARR won;t be a winner, just that you are asking the right questions and anybody that doesn't see or agree that having a contrarian view or devil's advocate posting to challenge the bull thesis is either a fool, conflicted with obvious self-0interest, or both...

    GLTAH
 
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