VML General Comments - Chat, page-2897

interesting article here

https://www.australianmining.com.au/features/rare-earths-to-leave-global-rarity-behind/

Its an interview with Tony Woodall  MD of ASM goes on to say

According to Woodall, companies that only produce carbonates, concentrates and oxides will only fetch a fraction of the price of those materials in metal form.
Oxide producers, for example, will be discounted by 25-35 per cent against the benchmark prices in China for their products.
People who are looking into the rare earths market don’t understand this very well, Woodall says.
“It makes a significant difference and is very important because companies that only produce carbonates, concentrates and oxides will only get the discounted prices,” he continues.

Now the above statement may apply to some but not us , i believe this is where Geoff Atkins has played a master stroke, In ref in conversations Geoff refers to reetec as our cornerstone investor and our deal is described as an offtake.

But in reality we could look upon this as a JV with Reetec and actually class ourselves as a supplier of rare earth metals to the end user , which is basically what it is, but what this deal does by being classed as an offtake, it leaves VML open to supply other users with a mixed carbonate,

Now how good would it be if Geoff could negotiate the same style of structured deal with SRC on our doorstep = profit after selling to the end user throughout the US and Canada Imagine the added margin without the transport costs

obviously i am surmising = profit as we have not been informed of the split but i really couldn't see it being anything less once each entity has removed its costs

This sort of deal will afford us a title of rare earth metal supplier without the added expense that goes with building a processing plant and i would think it would edge both companies against any sort of competion that comes from outside of China down the track

Like i said masterstroke

Yes the company is in its infancy but the way these guys are playing this by joining forces with other companies like Reetec and hopefully SRC both also in their infancy, i would say the future looks very bright for all involved including us as investors.

The slack will be taken up from this CR eventually and as other have made mention, at this moment in time that slack is offering up cheap tickets, give it a few months and those tickets purchased now will look like you have been to the buy one get one free stall

enjoy your wkends

see how we go