OK, so I thought (hoped) when the said they would be ‘making Magnesium metal in 2020’ (whatever quarter) I naturally assumed (my bad I admit) that it was from the Addy or whatever plant they were going to acquire
Western Magnesium plans for the pilot plant operation to be complete in Q3 2021. The pilot will inform the design of the full-scale plant. After some refinement, the plant will be capable of producing 99.8% pure Mg in ingots, granules or as molten material, Sauv says. (yes the 2021 date above is
most likely an error)
I do not see the date
when something will be ready as important as the
what will be ready.
Pilot plant as opposed to a production plant.
That is why I was doubting the timeline of making metal in 2020.
Now it makes sense.
Of course they can make metal with a pilot plant in that timeline, they already did with the prototype, that was one and a half years ago!
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Magnesium Ingot Produced and Proof of Concept Completed MLYF | December 11, 2018
(TheNewswire)
VANCOUVER, BRITISH COLUMBIA / TheNewswire / December11, 2018 –
Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (The “Company”) is pleased to announce: the technical team under the guidance of James Sever, P. Eng., has produced a magnesium ingot from dolomite secured from the Tami-Mosi property.
This completes the proof of concept stage allowing the technical team to develop an efficient pilot furnace capable of producing 2 kilograms of magnesium metal per hour.
The company has also engaged Silvertip Design NW for the design drawings for the silicothermic reduction unit.
Sam Ataya, CEO states, “This is a major milestone that clears the path for the company to move forward in a significant way.”
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Yah I know, these things take time.
But a year and a half and they are now
planning to have a pilot plant up in the next 4 - 5 months.
What happened in the meantime?
There were some pics of this marvel of engineering here:
A picture of the base refractory can be viewed at
https://nevadacmi.com/investors/furnace-dec-2016/december-2016.
The company plans to begin the test runs in early January 2017
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But strangely…. they are no longer on the web….
Getting a monster the size of the Washington plant retrofitted to production will take time, more than a few months at any rate and seeing they haven’t even bought one yet that date keeps creeping south.
Multiply that with the WMG/NVM track record factor of getting things done in a timely manor.
We could be talking decades (an exageration of course)
A pilot plant is a whole different story (especially if its the one they made in Ft St. John and just being modified although I hope for a more sophisticate version)
No doubt they could have that going in 6-7 months and also explains why the sp hasn't reacted yet.
A pilot plant is a 'proof of concept' (another one actually), if tests later this year pan out then its another step in the right direction but we probably can assume that there won't be a big increase in share price until at least the numbers from that are crunched and probably not until the production plant is up and running.
Or at least until 'a' plant is bought and retrofitting is started, that will more reassure bigger investors that economic feasibility is 'highly likely' in their view.
Maybe that will happen in the next little while.
Maybe.
At that point I can see the sp moving up somewhat as the ratio of speculation driven accumulation (as it is now) vs confidence of success buying moves more to the latter than the former.
But if there are more gaps in progress like in the past it will always drift back down due to lack of buying.
Right now investing in this is on the hope that it will happen one day (what can one expect for .14 cents?) as there is no proof yet that it will.
That’s not going to drive the price up much or hold it if there is a brief spike due to whatever market forces that periodically, and usually unexplainably, drive it up (then it fizzle back down again)
Talk is one thing action is something else.
I was excited that we may be getting close but a more sober review of the available information makes it look like we are a probably a year or more away from substantial progress both with respect to the process being technically and economically proven and any increased value in the company shares.
Anyone that has been here a while is used to hearing of progress and then waiting a few years for more, its nothing new but it may ultimately be worth the wait.
For anyone new here go back and read the NR’s for the last 7 years that are available online.
It may temper your expectations somewhat :-)
As Stockjockie rightly says
'All the original timelines I was told have been long surpassed'. So true.
I may be (and hope that I am) wrong with regard to the time to appreciable sp increase, after all, that is why we are here, but the market is smarter than me and it says its not close.
I've had my hopes up before (lots actually) maybe different this time?
It would be nice for it to happen in most (some?) of our lifetimes though.
Hang in there MNF, they say 67 is the new 47
Talking about old TV shows, I think the directors of WMG must use the cone of silence in their meetings, they must have worked the bugs out as it is working well.
Get Smart was great back then, I still get a laugh when I watch it now (funny, the wife doesn't think so...)
We may have to wait until next year for WMG, that is if Covid-21 doesn't get us.