We’ve been receiving more and more questions on our licensing strategy, and again this week on the conference call. We believe there is a lot of potential for licensing our technology, in addition to building our own plant. Here's why.
In fact, our technology is innovative, either by the facts that it produces a pigment of high quality, is economically very efficient and environmentally-friendly. Consequently, we believe it has the potential to be used in many regions of the world where there is a need for those attributes in the TiO2 space.
While we are targeting our efforts on building a technology center and a commercial plant in Quebec, licensing our technology could bring milestone payments, engineering and service fees, proprietary equipment income, and continuing royalty payments from licensee operations. Obviously, we will be very rigorous in negotiating terms that will adequately protect Argex technology so that it doesn’t put unnecessary constraints on Canadian operations.
Another important factor for our licensing strategy is the fact that TiO2 prices are expected to continue to increase, which will create even more interest for a low-cost technology like the one we have