RE:RE:RE:RE:RE:Probability: poolingFirst of all there isnt only RRS and UBR on the tsx.v scene, there is also CME (ferrosilicon business), and I-minerals (feldspar, quartz, halloysite business) and they are all not quite comparable (apple to oranges, different targeted products/development stage/strategies/capex requirements/business plan/risk-reward...etc).
now if you want to compare only between RRS and UBR, you should do your due diligence and be more objective. For instance, you didnt mention that RRS has ALSO two highly prospective deposits (iron and nickel which UBR hasent) with NI-43-101 compliant resource and tens of millions of dolalrs already spent on exploring those properties that are just waiting the commodity cycle to turn positive so they could be ignited. I am very bullish on Nickel (a lot of nickel goes in lithium-ion batteries cathodes) in the medium run (2-3 years) and bullish on iron in the long run (5+ years, a lot of mines cloed and are closing already due to poor economics, under-supply will show its ugly face with high prices very soon).
Now stating that RRS is "further quantifying their quartz resources" is an understatement, there is no comparison here to be made between RRS and UBR. RRS did the hard work with a full blown exploration campaign (geological survey, extensive sampling, extensive 11.000m+ drilling...) and are on their to publish in june a NI-43-101 compliant resource. They spent some 5millions of dollars doing the exploration, it took them one and a half year of very intensive hardwork to get where they are now. they even have done the meetallurgical testing of their silica (anzaplan results anytime this week) to be ready to include in the PEA in september and negotiating with potential off-takers.
UBR did nothing of the above. They are far far behind RRS in this regard. And any resources without a NI-43-101 compliant resource estimate HAVE LITTLE TO NO ECONOMIC DEMONSTRATED VALUE FOR INVESTORS.
Now regarding the business plan of both companies, it is night and day difference. RRS is company based on a relistic project with solid fundamentals, methodically developing it and derisking it step by step, with very high probabiliy of success.
On the other hand, UBR is building its business plan on a high risk scientific project/experiment/curiosity with IMHO extremely low probability of success going from lab scale to large pilot plant scale, not even talking about demonstrating economic viability and going after years from now to full plant scale and the hundreds of millions of sdollars required for this to ever happen. (using plasma to turn quartz onto solar grade silicon, there are many companies in the world who are still working/or have already worked on this, including in germany (City Solar AG), in Japan (Kawasaki Steel Corporation), in France ( Pechiney Electromtallurgie who have been bought by ferroatlantica), in Netherlands (Solsilc Development Company, or DutchSolar...), in Sweden, in Norwege...etc). The main difficulty of all these companies projects is to go from lab scale / small pilot plant scale to large pilot plant scale while demonstrating the economic viability of the techniques used.
I personally rather prefer to invest (like in RRS) and not to gamble (like in UBR), but to each its own.
happy silica investing to all, whatever your choice is.
brodeur wrote:
just a comparison between RRS and UBR:
- both have high purity quartz resources
- RRS is further in quantifying their quartz resources
- UBR has the resources, but added the PUREVAP business
- UBR also has gold properties which RRS does not have
from the market price, UBR was 0.03 when RRS moved to teens. now is the reverse. the market is liking the UBR story more than RRS, which correctly stated, makes RRS more undervalued.
however, the sexy story for UBR is PUREVAP, yet it still has the gold and quartz resources which makes it a very compelling story to bet on right now from all sides.