Argex Titanium Inc. ARGEF

RE: RGX value (my calculation)

[morricone]

Interesting projection, however I would disagree with your statement:

"A realistic and very conservative scenario is 1 module in 2012 (for 60,000 tonnes TiO2 produc tion), 5 modules in 2013 for 300,000 tonnes and 10 modules in 2014"

Not realistic, not conservative. I'd be quite surprised if the scoping study when it comes out shows anything other than a steady build cycle with the last module sometime after 2020.  You're projecting 9 modules being built over two years, 2013-4. That would be say $2.7 billion spent in a two year period, in northern Quebec which has winter 11 months of the year (ok, I'm exaggerating a little, but still ....have you considered the short construction season?). The oil sands companies found out the hard way that too many projects at the same time drove costs sky high with massive cost overruns. I doubt that the people planning this are unaware of that lesson. There's also no way that the company is going to get the financing for that kind of fast track construction.

I'm not even convinced that the company will get the first module up and running in 2012. The time line is already sliding out. The NI 43-101 was promised 1st quarter and it's already mid Q2 with nothing. The scoping study was promised late Q1 or early Q2 and it's now looking like late Q2 or even maybe early Q3. We're about 2 to 3 months behind now and that gap can only open as we move forward. I'm not surprised since so much of what is happening is being handled by a variety of outside contractors and they're juggling us along with other priorities.