What we can we agree on, REE demand, change only constant Good Evening, to all.
It is Sunday night and we have strong winds and pouring rain. Driving is touche, hydroplaning. They say snow next week, so maybe we have a white Xmas. But unlikely at my place. In a little pocket that almost always gets miss by snow, something to do with how the wind moves. But you never know, could happen.
There are certain things that most of us agree on. Example, Demand for REE is only going to increase greatly in the next twenty years.
China will do a lot of things to remain the top supplier of REEs and all the products that come from REEs to the world.
The US government does not have a good plan for a building a US REE supply chain, only money to throw at the problem.
With increase demand, it will drive REE prices higher.
Nobody has a full separation of REE outside China in house, not MP, Lynas, or anybody else.
So where does this leave Ucore. Right now, a little like the kid that is hoping his mom remembers to come pick him up after the game and it is getting very cold waiting. This is in the days before cell phones and yes, I am dating myself.
Ucore is in testing of it's RSX tech by a third party. I have know idea what this in tails, but it is new. If these guys are anything like the nuke engineers I worked with. They are going to take there sweet time to make sure they got it right. Which to a guy on the deckplates and stockholders is very madding. I know of no way to speed this up but at least a progress report before Xmas would be nice.
REE Demand: China is consolidating all six REE company into one mining conglomerate so the Chinese government will have greater contorl over REE and REE prices. The only way to stop or slow this down is with a better means of separation that is cheaper, way cheaper. Because true to it's word China is running out of REE ore and needs outside supply to keep it's separation plants running. If REE ore suppliers have a way to do separation cheaper than China. Then it might be a very different story. Is Ucore that way? In a word, no. RSX tech is a stop gap tech at best that will be out dated in ten to fifteen years. Can we make a lot of money in those ten to fifteen years, oh YES. Why? Because Ucore business plan is not single source separation. Ucore plans to do separation for anyone that wants to deal, not just one mine.
Change is the only constant: Will RSX be replaced with something newer, cheaper, faster, and cleaner. In a word, Yes. What form of separation will this look like, not a clue. Will MRT be possible. I would think yes. After the no compete clause expires. I expect IBC to jump into the REE Separation business and as long as Steve is running the show. Do not expect the cheap SOB to put up a dime to build a SMC but excect the other company to pay for it. Also to share the profits at 60/40 and I wonder if he will want the 60. The one thing that the US is very good at is coming up with new way to do things. In time this will happen. How soon is any one guess.
The Shoulder has been doing real good day. Being a long time at the keyboard can be painful. So bid you all a good night.
Dragon
Remember: Staying rich is a whole lot harder than getting rich. Remember the penney!