Different Rare Earth Business ModelCongrats to Tracy and Peter for getting this situation almost resolved in Laos.
The refinery in Laos has been built and just sitting there in Laos for quite a while now. The change in government resulted in a situation of a stalemate with permitting. Now that there have been these meetings with high level decision makers in the government it appears that with the help of the Canadian government delegates we may be close to finally getting aproval. YAY!!!
Because our largest shareholder and family has the expertise to build the refineries and was also instrumental building many refineries in China the business model has been to build and operate refineries and take a percentage of the business. This is a unique approach that nobody else is doing.
So this is just the beginning of the business model because it was noted in the recent interview with Dr Allen Alpers of MetalsNews that there will be several more refineries built around the world to actually process the rare earth metals and not just do exploration.
This group is way out in front of the pack.
They have the hedged contracts in purchasing ore and also selling ore. From this they receive a revenue from the spread of the price. They have not announced what this revenue is.
They also are finalizing the purchase price of the refinery in Laos awaiting the permitting.
They have not announced what the revenue is or will be and are most likely not allowed to make any guestimates because of the SEC rules.
This company is very underfollowed. It has a source of income. It has not had to dilute through the issuance of shares for 2 years which is a feat in itself. It has an interesting business model which is different than all the other rare earth companies in that it wants to actually produce rare earth oxides instead of spending all the company money on exploration.
If they are successful in producing rare earths and make a profit then we have a huge winner in my books.
A couple traders flipping out some stock but this story is still a possible 3 to 10 bagger in my estimation. The story has barely even got started and management doing a very good job getting ducks lined up.