Phone Call with MarkHad a lovely phone call with Mark yesterday in attempts to clarify some things. As we all know, UCORE has pivoted from a mining and exploration play to more of a Tolling concept via MRT.
As noted in previous releases, UCORES short term strategy involves creating multiple revenue streams as soon as possible. To begin, they are building upon their previous relationships with IBC, and cementing the Joint venture prior to adding value to IBC (which would result in them having to pay more to buy it).
Once the details of the JV are worked out, the plan is to build on the hub and spoke tolling models for some of the 50+ materials they have ligands for. It appears they will focus on the tech metals such as lithium, pgm's, and others begginning with the PGM SMC.
The company recognized depressed REE prices, and is pivoting accordingly until they recover. Although we still have concern about concrete pricing, giving that information out at this time without production capacity would only empower competition.
More and more, UCORE is transitioning to a technology and service company, as opposed to a miner and developer.
I am happy that someone as astute as Jim and the executive team are in control, and are as flexible as they have been. If UCORE was strictly a REE stock, i'm shore we'd be sitting a lot lower here.
Furthermore, after seperation and tolling is in place, REE prices recover, we are still sitting on a huge resource in Bokan, and the alluvial tin deposit in the Ray Moutains.
Ultimately it comes down to this. Ucore has not officially locked up IBC in the JV just yet. Prior to that, is seems they will not add value to the company because that may increase their proposed purchase price. Once the legal stuff is official, the real fun will begin.
There is still some confusion regarding pricing of the seperation process in general, but I have no reason to believe it is not cheaper than legacy seperation tech, at the minimum in a few of the 60 materials they have ligands for.