RE:RE:RE:Response from Medallion Virtually everything written re RE investment has been written bottom up, very much focused on the physical "resource", with every wannabe making huge efforts to spin their "resource" as the best thing since sliced bread.
Of course most have done their pilot plant & flow sheets producing a wonderful set of numbers that proves just how profitable they are going to be, though I would note the few that have produced anything have produced nothing on spec in commercial quantities, and it took Lynas 30 months to produce 857t NdPr on spec June Q 2015. Was fortunate to make an analyst visit to LAMP in late May 2015 and got a first hand view of just what they went thru to get to that point.
A few months later the customer rescued Lynas, they were tapped out raising any further cash and prices were tanking, because Lynas had finally delivered value added product the customer could use. Conversely Moly had never secured customers, nor produced on spec product, and was simply allowed to fade away.
First thing there is the value add process is the true "resource" in a RE company, the ability to produce on spec product cost effciently, should be fairly obvious there is no shortage of monazite waste, secondly that the company can meet customer needs, as Amanda Lacaze says "they are the ones that write the cheques".
Effectively selecting a RE investment should be a top down analysis, has the company got the ability to value add cost effectively?
And that very much includes meeting the cost of capital from the outset.
Have they got the ability to meet customer needs and form LT secure relationships?
MDL business plan incredibly flexible, with the IP to deliver upstream, and quite probably downstream as well.