RE:CME PEADifferent businesses (selling feedstock material VS processing the silica material) / different numbers / risk/reward scenarios / probabilities of going into production, but the CME PEA shows the huge advantage of RRS deposit/project VS other silica juniors. These two numbers alone tell the whole story :
Capex : 303million$ (VS most probably less than 50M$ for RRS)
Measured Resource : 3.5million tons at 98.5% purity silica (VS most probably more than 20million tons for RRS)
They will release a feasibility study in q1 2017, and then if they decide to go to production, they need to initiate permitting, secure off-take agreements, and convince financiers to give them 300M$ (good luck with that).
These high capex industrial mineral projects on the tsx venture rarely (if ever) get financed and go to production in a down cycle commodity market. shareholders in these projects generally suffer years of dilution waiting for the commodity cycle to reverse, by that time, it would be already too late for initial investors to make any money. I prefer to stay far far away from high capex projects in the venture.
Also it should be noted that there is a confusion/change of business-strategy/lack of focus for CME management business plan, very apparent in its news releases, they were planning just months ago to produce ferrosilicon, and suddenly they decided to go after the silicon metal market ?!!!!!!!!!!!!! if that is not a red flag for potential investors i dont know what it is...I wish them success in their mission impossible ? but a more focused business plan is key going forward. wish them success. In the beginning it was only ferrosilicon : August 31, 2015- Montreal, Quebec – Canadian Metals Inc. ( the ‘‘Corporation’’) (CSE : CME) has retained Celtis Capital Inc. for coordinating the preliminary economic assessment (PEA) of
implementing a ferrosilicon plant with a planned capacity of 50,000 metric tonnes per annum at a site to be determined in the Province of Quebec.
About Canadian Metals Inc.
Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American ferrosilicon producer.
Then ferrosilicon + silicon metal flex approach ? MONTRAL, QUBEC--(Marketwired - Nov. 18, 2015) - Canadian Metals Inc. (The "Corporation") (CSE:CME) plans to significantly enhance its strategic options with the introduction of a Hybrid Flex concept for its planned ferrosilicon production plant based on the Langis quartzite deposit. This concept allows the facility to adapt fully with the flexibility to shift production between ferrosilicon and metallurgical-silicon production according to market needs. The enhanced plant profile is an outcome of the ongoing Preliminary Economic Assessment (PEA / NI 43-101) which is being carried out by the German company Viridis.iQ GmbH under the coordination of Montreal based Celtis Capital Inc., in collaboration with local environmental and geotechnical experts, respectively Biofilia and GeoLogic, both located in the province of Quebec. About Canadian Metals
Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American ferrosilicon producer.
Finally : silicon metal ?
(they have to decide rapidly what they want to produce) MONTREAL, QUEBEC--(Marketwired - Feb. 22, 2016) - Mr. Leblanc, president and CEO of Canadian Metals, stated: "We are very pleased to add Mr. Bulln to our team. His nomination reflects the evolution of the corporation which is entering a new phase of project development. His expertise in ferroalloys and specializes in the production of silicon metal will be of great value to Canadian Metals which aims at bringing its Silicon Metal Plant project towards the exploitation stage." About Canadian Metals
Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American silicon metal producer.
Floridas2000 wrote: Here is the CME PEA, look at it unbiased as if this was RRS. It can give us a bit of a guess on what our PEA might be like.
Thoughts?