London, England / ACCESSWIRE / October 22, 2014 / Today, we have published a new research update on the rare earth market and Commerce Resources Corp. in particular. The full analysis can be viewed with the following link:
http://www.rockstone-research.de/research/RockstoneREE7english.pdf
As our prior series of articles endeavoured to convey, the rare earth space is complicated with many facets that need to be evaluated to properly assess the quality of a development project (mineralogy/metallurgy, grade/tonnage, rare earth element (REE) distribution, economics, infrastructure, jurisdiction, etc.).
In this piece I would like to focus the discussion on the two contrasting "Mine-to-Market" business strategies prevalent in the space, in an underlying effort to understand the reasoning behind choosing one or the other, and to hopefully gain additional project insight. After all, there is a possibility that even a quality project may fail if a poor 'mine to market' strategy is followed by company management.
I will also try to illustrate how, in my opinion, the primary driver in the business strategy decision making process is the deposit's amenability, or lack thereof, to beneficiate to an REE mineral concentrate and the resultant decrease of the downstream capital and operating expenditures.
All REE projects in development may be generally categorized into two main mine-to-market business strategies or models:
A) Process through to separated rare earth oxides (SREOs), or
B) Process through to an intermediate product that is saleable, or tollable, into the market (i.e. mixed rare earth oxide, mixed rare earth carbonate, mixed rare earth chloride)
Each strategy will have its own pros and cons, and these attributes will relate back to the nuances of each individual project, most importantly, the mineral processing and hydrometallurgy. So the natural question is: Which strategy is more economically sound?
The full research report is available as a PDF via the following links:
English:
http://www.rockstone-research.de/research/RockstoneREE7english.pdf
German:
http://www.rockstone-research.de/research/RockstoneREE7deutsch.pdf
On October 17, the investment bank Secutor Capital Management issued a readworthy research update on the REE market and the feats of the Ashram Deposit:
http://www.commerceresources.com/i/pdf/Secutor-Capital-October-2014.pdf
Link to chart analysis: http://scharts.co/1w2qvEl
Commerce & Co. touring Europe in November 2014:
On November 6, Commerce will be presenting at an event in Frankfurt. On November 7-8, the company will be in Munich at the Edelmetallmesse. On November 10, Commerce will be in Zurich, and in Geneva on November 12. At all events in all cities, Prof. Dr. Hans J. Bocker (www.profbocker.ch) will give a speech. Other key-note speakers: Chris Berry (economic expert), Richard Carleton (CEO of the Canadian Stock Exchange CSE), Derek Hamill (Analyst with Zimtu Capital) and Stephan Bogner (Analyst with Rockstone Research). In order to participate at these free events, simply send an email to Sven Olsson: solsson (at) zimtu.com
Frankfurt, 6th November 2014; Hessischer Hof:https://events.r20.constantcontact.com/register/eventReg?oeidk=a07e9w1g04n06e7283d&oseq=&c=&ch=
München, 7.-8th November 2014; Edelmetallmesse:
https://events.r20.constantcontact.com/register/eventReg?oeidk=a07e9wq20zc187ae9fd&oseq=&c=&ch=Zurich, 10th November 2014; Park Hyatt Hotel:
https://events.r20.constantcontact.com/register/eventReg?oeidk=a07e9wq4qdub5ac397b&oseq=&c=&ch=Geneva, 12th November 2014; Hotel Metropole:
https://events.r20.constantcontact.com/register/eventReg?oeidk=a07e9wq636jf72bb170&oseq=&c=&ch=
Disclaimer: The author holds shares Commerce Resources Corp. And thus will profit from a share price appreciation, whereas the author may sell those any time without notice. Neither Rockstone Research Ltd. nor the author was remunerated by any of the companies mentioned herein to produce or publish this content. Please read the full disclaimer within the full research report and at www.rockstone-research.com as a conflict of interest exists and none of this content is to be construed as an "investment advice."
SOURCE: Rockstone Research Ltd.