Call to MarkHey guys,
I hadn't called Mark in a while so i thought it was about time to clear up some questions I personally had. Maybe it will be helpful for you as well.
1. Current status of pilot plant: Orca currently owns the pilot plant and is leasing it to UCORE for 3 years. Ucore is paying 15% of 2.5m per year. They can purchase it back if they choose. Mark describes the relationship with Orca as "dynamic" because Randy Johnson is one of their primary backers. They have weekly meetings.
2. Will pilot plant be used for revenue: Mark explained that it will be used as a proving ground for feedstock and design. No plans to use it for revenue at this time.
3. SMC Location selection in Ketchikan: Since this is not yet public information, he could not comment. However, it sounds like they will be announding the location in the near term. Timeframes for production to begin in 2020.
4. Is there a throughput estimate on Kentucky River Properties Trus Joist facility: Mark advised that this has not yet been released so he could not comment. Facility is 400,000 square feet. A Superlig unit was previously announced to take up about 250-500 square feet, so think of the potential.
5. What percent is the JV with KRP?: Mark also said this was not public information and would be announced at a later time.
6. Path to revenue: Mark advised that they are looking to create revenue prior to the SMC commencement in 2020 via other commercial partnerships and licensing agreements. Options for revenue also include IBC and related businesses. Mark seemed focused on businesses related to Gold, Nickel, Vanadium, Cobalt, lithium, and Ree's.
I inquired about the lack of PR related to the agreement with LEXI. Lithium brine and oil sands seem to be other areas to explore, but they seem to be focused on certain metals that are rebounding off of a bear market.
Mark seemed dissapointed about the KRP acquisition announcement, which he thought would jump the share price. He advised that a large private holder seemed to utilize the news to sell on volume. Mark advised that this should be an exciting summer with a few announcements.
My opinion is, within the next several months we will have Ketchikan SMC location finalization, a licensing agreement with a private coorporation, and more details regarding the KRP JV.
Timeline to production is 12-18 months.