RE:SCY will mainly be selling AL-Mg-Sc alloysAllDutch1234567 wrote: In essence: the industry wants alloys, not the white powder (scandium oxide).
Selling alloys is a ver clever strategy. You can read all about it in the March 2 news release, the MOU with Weston Aluminum.
Let me explain why this is so interesting.
In the NR: "The process for making scandium Master Alloy is generally known, although efficiencies vary widely in practice. While numerous entities make and sell a variety of aluminum master alloys globally, very few have established the capability or the access to scandium, to make Al-Sc Master Alloy product well."
Note:
1. If there are only few entities that can make the Al-Sc alloy well, this is potentially a bottleneck- problem area- in the supply chain. This could slow down Sc adoption.
2. If efficiencies vary widely, this puts the Scandium oxide pricing discussion in a different perspective. You know: 1500 or 2000 USD per kg.? Alloy with scandium @ 1500 inefficiently produced could be more expensive then alloy with scandium @ 2000 produced efficiently! So, if you are selling alloys, the scandium price is just one of the variables, and less relevant.
3. SCY has patents for Al-Sc alloy production.
In the NR: "The Company believes that it can establish world-class techniques for manufacture of scandium Master Alloy, and can offer an upgraded product to aluminum alloy customers directly. This approach enables the Company to better control product quality, by consolidating the upgrade step through a trusted downstream processor."
Note:
1. SCY will sell Al-Sc alloy to Weston's existing customers. And jointly they will target new customers.
2. The world class techniques (based on SCY's patents) differentiates SCY from the others: CLQ, Platina and Niocorp.
This MOU With Weston is critical to SCY's success. It is not enough to be a scandium miner only!!
Now you know why Weston will be one of the investor to finance the mine construction.