Geomega: the PlanGeomega has reached a brand new level in the last few months. While all efforts were put on becoming the first producer of rare earth oxide in North America, it is almost time for Geomega to disclose its vision for the future.
What we know - A separation plant is coming: the engineers will be named shortly, location and then a CAPEX of $ 2 millions or less;
- projected sale for year 1: $10 millions
- products: High demand high price REE
- margin: around 24%
- time to pay the separation plant (1 year)
- REE pices for high demand elements are rising and will continue to do so for a number of years;
- Recycling rare earth metal is attracting for everyone (government, investors, end-users)
What we need to know (or that we will know) in the coming months - What is the expansion plan? $10 millions sale is not bad, but the potential is there;
- Will Geomega focus on recycled feeds or will go straight to traditional mining with one of the best REE project in the world belonging to them (Montviel)?
- Will Geomega decide to build plant everywhere where a partner will want their own feed recycled and separated to get rare earth oxide?
- What will be the impact of the pilot project with the university of Liege? Will Geomega find a new client (automobile company) ready to send some new feeds to recycle the REE present in the permanent magnets?
What will remain unknown, but can have a major impact in a not so distant future - What major companies will decide to have a look to GMA? Not to dream too big, but Apple is looking for REE oxide and would like green technology, automobile producers (EV), and so on...
- How long before government decide to put more money in GMA, as a green technology revolutionizing the world is exactly what government are looking at;
- Can traditional mining company enter the sphere? Teck ressources for example..
It is time for management to shine. A lot of various industries need rare earth oxide and who knows what these players are ready to do in order to ensure a top spot in the supply chain?
2.4 millions is not bad for the first year. But valuation of Geomega will increase dramatically once the potential players realize how to secure their spot in the supply chain.
Moulouk