Hype and 75 a share price target. Good Evening all,
The first nice day this spring. Got all the way up to 63-65 with sunshine after the morning sea mist burned off. I got to sit out on the back deck and enjoy the sunset with a cup of coffee. Oh well back to the subject of the post. The PR of 6Apr2023 include this.
An amended incentive offer of US$15 million which includes a US$900,000 grant for infrastructure improvements
GAEDEA ("Greater Alexandria Economic Development Authority") will provide grant funding of US$360,000 to offset facility costs for the initial 24 months
So Ucore has 1,260,000 in grants to cover rent and to update existing services and install any needed new service. Fiber optic come to mind, railroad, and to repair any roads that get torn up during installation. Between now and next fall to order parts to build the first phase of the commercial plant. Ordering parts take time. With construction beganing this fall. All of this was in link to the video I posted.
The resent article I post about Vital Metal stopping construction of its separation and concertration plant was on only one of six supplier. True that Vital Metals is Canada only REE mine, but it does not have an other elelment that can make enough cash to do REE separatio also. So hopeful Ucore will help them out with RSX to do the separation.
If one looks at MP stock price chart, one would see a spike to 75 a share on news that they were going to re-open the mine. Then a sharp fall off when the news came out the they could not separate the ore and had to sent it to China.
So could Ucore also have a hype spike in stock price when they get funding. Every time there is even a hint of funding the shock price starts going up. So I would say yes. That when funding hits the news there will be a spike. How high? Good question, now Pip will take the extreme low end and I will take the extreme high end. Depending on the type of funding, grants vs off take agreements and how much. Enough to build the first phase or the whole 75 million to get it up and running as soon as possible. Will determine the size of the spike and how long it will last.
Do I still think that Ucore will hit 75 a share? Yes, I do. But two things have to happen first for that to happen. Ucore has to get on to a US exchange as a regular stock and the first batch of REE oxides are delivered to the OEMs.
Good Night all,
Dragon