In answer to Pip's question, why am I talking big money.Okay Pip,
Why am I talking big money, because I see beyond today's closing stock price for Ucore.
Lets look at the reality you choose not to see.
China as the world factory is closing. The Chinese are up to there necks in debt. The Ukraine war has cut off the inputs to grow the main food, rice. They have sickness in there pigs to the point they may lose 90% of them. Global warming has cause drought in the area that rice is grown. Companies are leaving as fast as they can pack up and hang the closed sign on the front gate. Unemployed and hungry workers won't be interested in REEs, only in food.
The demand for REEs is expected to increase five times by 2030 to about 30 billion. Of which Ucore only planned to tap 20% or 6 billion a year. But ask yourself If the six big companies that produce 80 to 90% world's REEs go off line or China stop exports. How valuable would any REEs Ucore was producing be? Would the Government and big business throw money at the problem to get anything on line and producing?
This is all happening in the next one to five years, not ten, twenty, or thirty five years.
Once DOD money is tapped with testing. Any trouble in the world supply will only increase the flow. Remember the government has the power to order the building of the SMC by going to a 24/7 workday. Been there, seen that, it was not fun. But god the money was great, you just never got a chance to spend it until the work was finished.
The question we all should be asking is just how fast can Ucore get LA on line if China goes off line? What would happen to Ucore stock price? The REE bubble is building and when it pops Ucore stock will be big money.
Okay Mr Realist,
If China shut down REEs.
What would Lynas stock price be?
What would MP stock price be?
What Ucore's stock price be?
What would US government do?
Am I saying this will happen, no. I am saying that part to all of it could happen, it is not going to remain status quo. China exports of REEs are already going down every month. How long to they stop? Who knows. If China starts a war with US. It stops. If China's Government fails. It stops
A lot of things could stop exports.
Any stopping or slowing of REEs to market only increases price and demand for separation plants in US and Canada. More demand the more money to Ucore to finish.
Yes, It is looking down the road a ways. Not today price or next week or next month Pip. But next year, the year after that that.
That is why I am talking big money, scary money. The kind of money that can make you very very stupid.
Be carefull what you wish for, you just may get it.
Dragon