RE:RE:RE:Comment on Ucore vs. AvalonA note of caution then.
I've worked in a mine-finance analysis group, and this word was never used by us. From the company's perspective, the published FS is a tool for use in attracting financing. The full spectrum of feasibility work is far more extensive than what an investor is permitted to see.
The financial community is, in general, not qualified to assess technical reports; you need to be qualified in mining engineering and/or geological engineering. If you'd like a spectacular example of incompetence by a banker/engineer on a "positive" FS, read the RBCCM reports on PTM's Maseve mine. The guy actually did a site visit, but clearly did not know the questions that had to be asked. If he had, he would have concluded his clients should be selling. Or worse, he knew and didn't warn his clients.
I have a mechanical engineering degree, and that does not qualify me. I have additional time spent in mining school and on mining projects, and my expertise is nowhere near enough to fully assess a FS from front to back, No one I know can, and that includes a geostats expert (who eats and breathes technical reports) and a security commission expert (who analyzes them for errors and omissions). It normally requires a team of mixed experts. A banker? Not a chance.
Specific to AVL ... the prior Nechalacho FS, published before production was cancelled, was assessed as unpersuasive by both me and the P.Geol. who discussed it with me. But the FS presented itself as positive ... have you seen one that didn't? We wondered if Bubar was actually relieved to have an economic excuse from China so that he didn't have to be embarassed by producing at a loss before stopping the project.
What is it about the later feasibility work that tells you it's "bankable"? What qualified person was it who used the term?
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Goodtoreadthis1 wrote: It is a term of art in the financial community which means it is the highest quality feasibilty study that can be produced. AVL holds a rare earth deposit that is of the highest quality with a report on it that is of the highest quality. That feasibility statement can literally be taken to a bank to solicit funding. Hence the name.
China's rare earth business scheme has been to price rare earths such that it was impossible for others to compete. Recently China has changed it's approach and has let rare earth prices to rise substantially which puts AVL into a GREAT commercial position. AVL's rare earth deposit could VERY SUDDENLY become of great international value.
We are sitting on some ENORMOUSLY valuable assets. Glad I hold this stock.