| Present Estimated Bokan Basket Price Case | $77/kg. |
| Flagship Project | Bokan Mountain |
| Ownership | 100% |
| Mineral Resources (M&I) | 23,752,458 kg REOs |
| Shares OUTSTANDING(https://ucore.com/investor-centre/cash-share-structure) | 284,129,859 |
| Market Cap | $45,460,777 |
| Average Annual Production | 2,051,349 kg |
| LoM | 11 Years |
| Payable REOs | 22,564,836 kg |
| True All-in Cost (TAIC) | $52.08/kg. |
| Gross Revenue | $1,737,492,372 |
| Royalty | ($34,749,847) |
| Gross Income | $1,702,742,525 |
| Total Operating Costs | ($636,000,000) |
| Operating Profit | $1,066,742,525 |
| Total Capital Costs | ($221,000,000) |
| Income Taxes | ($282,686,769) |
| Net Income | $563,055,756 |
| Net Profit Margin | 32% |
| Absolute Cost Structure (ACS) | 68% |
| MTQ Score | 0.5 |
| | |
| True Value | $1.98/sh. |
| | |
| Cash Flow Multiple | 5x |
| Net Average Annual Cash Flow | $51,119,617 |
| Future Market Cap | $255,598,085 |
| Market Cap Growth | 462% |
| | |
| Target | $0.90/sh. |
Notes: All Values in U.S. Dollars
FCM 2020 BOKAN MOUNTAIN BASKET PRICE CASE BREAKDOWN
| Updated | Heavy Rare Earth Metals | Last 2020 Price ($/kg) | TOTAL PRODUCTION (kg) |
| 17-Jan-20 | Europium Oxide (EuO) | $30.62 | 75,537 |
| 17-Jan-20 | Gadolinium Oxide (GdO) | $23.69 | 778,320 |
| 17-Jan-20 | Terbium Oxide (TbO) | $513.87 | 133,350 |
| 17 -Jan-20 | Dysprosium Oxide (DyO) | $248.57 | 889,121 |
| 17-Jan-20 | Erbium Oxide (ErO) | $22.96 | 388,222 |
| 17 -Jan-20 | Yttrium Oxide (YO) | $2.92 | 4,782,634 |
| | | | |
| Updated | Light Rare Earth Metals | Last 2020 Price ($/kg) | |
| 17 -Jan-20 | Lanthanum Oxide (LaO) | $17.13 | 2,009,622 |
| 17 -Jan-20 | Cerium Oxide (CeO) | $1.68 | 6,096,947 |
| 17 -Jan-20 | Praseodymium Oxide (PrO) | $48.10 | 758,162 |
| 17 -Jan-20 | Didymium Oxide (NdOPrO) | $40.74 | 2,940,686 |
| 17 -Jan-20 | Neodymium Oxide (NdO) | $42.42 | 2,940,686 |
| 17 -Jan-20 | Samarium Oxide (SmO) | $1.82 | 771,549 |
| | BASKET PRICE ($/kg) | $77.04 | |
| | | | |
| | GROSS REVENUE | $1,737,492,372 | |
It’s important to keep in mind that we performed our Ucore analysis at prevailing rare earth prices (Table), so its 100%-owned Bokan Mountain Project is viable today with an admirable 32% Net Profit Margin.
Ucore’s IBAS bid partnership with high performance alloy supplier Materion is a plus, too.
How does Ucore compare to Texas Mineral Resources?
Upon completion of a bankable feasibility study, TMRC’s stake in Round Top will be reduced by 70%. Its stake will be further reduced by an additional 10% following a one-time $3M payment by U.S. Rare Earths. We can’t justify holding shares for an extended period in a company with a future stake of but 20% in its core asset. If management is looking for an exit, we are, too.