Explorer and producer.
We are expecting to hear good news any time on the closing for the rare metals property which should really be positive…especially given the its historic drilling data and the possibility for very high grade resources. This alone would make the stock very attractive.
The cherry on top is the fact that PAW is about to commence production of Tantalum…which means cash flow. Look at the growing demand and prices for Tantalum ongoing.
With the expectations that PAW will already be in production this Quarter, it would appear to be perfectly placed. If this has been posted here before please excuse.
Market Trends for Tantalum…as at Dec/last.
https://tantaluminvestingnews.com/1087/market-tends-for-tantalum-2010/
The supply chain for tantalum was already stretched thin before the reduction of supplies coming from Africa. Congolese tantalum represents about 15 percent of the entire market, which is dominated by Brazil and Australia. The reduction in supply from Africa stretches the supply even thinner. Prices have been steadily rising for the metal in demand, stemming from increased demand for high tech electronic goods. The desire for these products is not likely to subside anytime soon, which should drive this market in the future.
“Tantalite ore prices remained fairly constant at $40 per pound from 2007 into 2009, but starting midyear 2009 prices began to increase dramatically. In less than a year, tantalite ore prices more than doubled with the prices for Q1 2011 now coming in at $120 per pound and spot prices expected to touch $150 per pound,” stated Mary Ellen Bauchman, TTi Insights. TTi is an electronics manufacturer; these prices represent what suppliers pay for the materials.
Physical demand will continue as tantalum is irreplaceable in many of the high tech electronic products. The increase in demand from a rapidly urbanizing China alone will grow the consumer electronics market, putting added pressure on already thin tantalum supply. Acer, the world’s second largest PC vendor, expects “PC revenue would grow 10-15 percent next year, driven by growing demand from China and emerging markets,” reported Ken Wills, for Reuters.
The growth of these markets will fuel the price of tantalum in 2011. When coupled with the move away from tantalum sourced in Congo, the outlook for tantalum mining firms is strong. The outlook from tantalum consumers in the US is for dramatic price increases in 2011. Bauchman added, “The DRC “Conflict” region supply will effectively be taken off line on or before 3-31-11 thus reducing the overall available supply by 16% Tantalum demands will continue to increase driven by upside of needed components for wired communications equipment, laptop computers, 4G hand phones and other newer technology electronic components,” she went on to say that, “In the near term these manufacturers will have to replenish their supplies at current market prices of more than 2X their old cost structures resulting in large tantalum capacitor price increases.”