My 2 cents.Thanks Shelbs. Very nice to get someone’s else’s opinions, thoughts and views. It’s important to have input whether good or bad.
I will add a few points of opinion as well, and again this is not investment advice.
Things I do not like from the news release! 1) I did not expect that it would take that long to build a new Separation Unit! Maybe the market didn't as well? I was taken aback honestly at first. But that was my fault for making assumptions instead of asking Kiril how long it would take to build approximately. I since got clarification and understand now. With which I am satisfied. It is what it is..
2) I find sometimes the news release lacks clarity to the layman such as myself or has some holes in it or different words or tech language that I do not understand at first reading. So I do not know then the significance of it, and how to weight and measure if is good, or bad. Eg
. Separation Factor (Nd/Dy). To others in the know of this REE stuff would be blown away as to the significance of it. With what I know how can I compare it to? Is anyone else of our competitors providing actual stats?
3) Missing DY separation results of purity. I expected something. Again my assumptions as to what to expect.
4) Of course that lack of interests or lack of momentum that did not result in a share price appreciation.
However! Now that I have time to research, reflect and do some math I will share with you what I like about the news release. To which I will ask and send email to Kiril for confirmation of my thoughts and expectations! I’ll take it by line by line that I like and quote the press release. The lines I leave out does not mean that I do not like it. “The unit has been built with offtheshelf equipment and is now ready for larger scale testing at Innord’s laboratory at the National Research Council Canada facilities” - It is ready! So what does ready mean? Here again I am assuming and will seek clarification from Kiril. If the equipment is ready it should have been commissioned with at least a base line success from previous 1kg/run and purity. No?
“
Commissioning of equipment; Equipment commissioning is conducted to ensure that
equipment is functioning properly before it is used.
Equipment commissioning is the process through which
equipment is tested in order to make sure that the
equipment was properly designed and built.”
“
The 20liter unit has been built on budget” - Who does not like seeing correct estimations on building equipment. Credibility!
“Has the processing capacity of up to 7 kg per batch of recycling material.” - Based on their chart of resident time in separation reactor of 8 Hours. It would seem that it could process at least two batches per day of 7kg of magnetic material. But who wants to work and monitor this stuff on shift work? So they are going to build a larger capacity unit. So here I’ll assume they sourced at least some of the same REE residue with their previous sourced material. I’ll quote from previous news release ” The industrial residue that has been successfully processed, has been identified to date in North America, Europe and Asia and is running on average, depending on the source, at grades between 40% and 50% TREO and between 1% and 2% cobalt” That is a very rich source of REE’s
https://ressourcesgeomega.ca/wp-content/uploads/2017/10/2017-09-19-Nd-Dy-and-Co.pdf This is real world waste material being tested with results.
“This will include increasing the purity to over 99.9%“ - There is obviously an implied importance to increase purity to +99.9%. To which I have no answer, so I will ask Kiril about that significance of it. Can you command a higher price per kilo then? If so how much higher? Why try if you already have 99.5%+ established for Nd.and market for it. Why waste that time to get it? Is it to really make a mark and statement to the market, industry and competitors? 5N purity? Is this to cater to a specific entity need as in defence? Is it to live up to German enginering?
“Discussions continue with several groups around the world to secure large volumes of magnetic residues“
- To have customers buy your REE’s produced you need to ensure that you can live up to supplying their need by ensuring you have sourced material contracted and available, and of course be able to process/separate the REE. One step at a time. Let’s be honest there is an incredible need for REE’s in this world.So finding a buyer for your REEs products should not be that hard!!! Of course limited by your production ability. So there could be signing of agreements and or partnerships to take all your supply. Is this farfetched?
“Many global initiatives are focusing on recycling these products and Innord is well positioned with its ISR Technology to extract all the REE and cobalt in these magnets in a sustainable and price competitive way.” - This is true and speaks for itself! Who else can process Magnetic residue in North America? If there is let me know the volume as well and purity please.This is getting de-risked bit by bit. Maybe not at the speed I would like. But never the less it is moving in the right direction.
"Results of the upcoming scaleup tests will be provided to the market gradually as testing progresses.” - Well this is good no? Regular updates that I like instead of waiting, waiting, waiting. This is most likely going to used to maintain attention as well as keeping the interest up to current and future investors. Will it attract attention most likely.
On a side note once the iron is separated out of the magnetic residue your left with the REE volume/weight balance that constituted the TREO of 40-50%. With that they will have separated out the Cobalt to the purity they have stated as well as the Nd. to the said purity of 99.5%+. The Dy and other REE’s that are there but cannot be separated at this time to desired purity and will most certainly be stored for later use and refining. Let’s call it stored value! It will not be wasted and or discarded. If they do Ill take it.
Bonus:
One more thing is the Gem that Geomega’s holds with Kintavar Via shares held and maybe one day distributed to us in some way..
Here is a link to some interesting ideas and opinions about copper and sharing it for information purposes. I like a lot of what he is saying about copper grades and the future of copper and electrification. I wonder if he knows about Kintavar and the grades so far they have come up with. It’s interesting that he see’s in the future the need of Copper prices of $4.50 a pound to make copper mining profitable with grades of 0.3 -0.5%. Does Kintavar not have Higher so far? Apparently there are only 20 primary copper mines in the world. If you have time listen to the video. He has other videos as well. So look it up if your interested.
https://www.youtube.com/watch?v=AwIdvylqCAI If Kinatvar really Shines with new assay results from the ongoing work there it can only benefit Geomega and its share holders.
Kiril is a smart guy. He mentioned to me that to build a gold resource you will be competing with 1000s of others who are doing the same. If your building a copper resource how many are you really competing with? Not that many in the world. Something to that effect. Wish I could quote
More accurately. But something to that effect.
This is just my thoughts and opinions. Do your own Due Diligence and this is not investment advice at all. Please be a free thinker and think for yourself. Research, question, verify and ask Kiril for any clarification if you need. Yes I own shares. I do not have a crystal ball to see the future and I could be missing something as well thats important.
GLTA