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Ucore Rare Metals Inc. V.UCU

Alternate Symbol(s):  UURAF

Ucore is focused on rare and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore's vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.


TSXV:UCU - Post by User

Bullboard Posts
Comment by Lurker11on Jun 02, 2014 11:28pm
161 Views
Post# 22623355

RE:Questions:

RE:Questions:MajorityMob: Having senior management engage in insider buying is certainly a positive investment consideration but it by no means ensures success particularly in the early stages of an early stage start-up where important questions have not been answered and some questions haven't even been asked or answered yet. I was a shareholder in a small oil and gas company where the CEO bought over a million shares just prior to the recompletion of a well that was very important to the company and would have had a very positive impact on the share price. The recompletion was to fix a bad cement job and stop the water in flow. He was obviously confident in the success of the recompletion but underestimated the complexity of the downhole problems and the recompletion failed. He made a bet on the success of the work and was wrong. The same applies to UCU. For the COO to buy into the company he obviously believes based on what he knows, in the future of the company. His bet, and any shareholders bet, is on the success of the FS. Factors that have no resolution as yet include the ability and efficiency of the DEXRT separation process, the economics associated with a very low grade deposit (0.61%) with a very narrow cutoff grade (0.4%) in a very low price environment, how they will manage the uranium content safely and where will they ship the separated materials for processing into metal alloys and magnet metals prior to sale to end users. Lets put it another way, a lot of very "knowledgeable and experienced" folks bet a lot of money on Molycorp and Lynas and if they got in and out early might have made some money but both are now teetering near failure - UCU is probably different though. UCU is a bet on the FS and factors that go into it which is far from a sure thing... period. Also, they said that the FS would be done by years end (2014) and they haven't even picked the engineering firm yet - maybe waiting for some sign that REE prices will move up to help with FS because they have a good idea how it will turn out at these prices.
Bullboard Posts