Comments on: Great Western Minerals Group Brings Non-Chinese Rare-Earths Sector To A Turning Point

By: Jack Lifton

Jack Lifton — Sat, 06 Aug 2011 00:58:07 +0000

In reply to wwwater.

wwwater,

I’m going to try and end this thread by pointing out that I have come to the conclusion, as I think you have, that Molycorp and Lynas, neither of which has ever before engineered an SX, a high purity metals, a specialty alloys, or a rare earth permanent magnet manufacturing facility (Please don’t tell me about Molycorp having done this. Their current SX plant is decades old, and even they admit it has to be replaced or “re-engineered.”) is unlikely to get any of their operations done on time or within budget. You and I have noted the disconnect between the CAPEX planned by Molycorp and Lynas and that planned by GWMG/GQD. I think that of the three ventures, since only one has done it before, therefore only one knows what’s its doing. Isn’t it interesting that the one that knows what it’s doing is building the smallest plant?

By the way it is not obvious that the GW/GQD facility will be more simplified. It is obvious as I said above that only the GW/GQD plant is being built by those who know what they’re doing.

Let the rending of garments and the personal insults begin by those who buy into expertise from the inexperienced.

By: fran

fran — Thu, 04 Aug 2011 22:22:49 +0000

i’ll take the candidate with large institutional investment in it . what are those top five and their ownershp quantities?

if institutions lack interest, i do also.

By: wwwater

wwwater — Wed, 03 Aug 2011 16:54:43 +0000

I want to bring up the issue of Capex (Capital Expenditure) . The current Capex for the refurbishment of the SKK monazite mine along with the installation of the benefication facility and the construction of the SX plant with an output of 5,000 tpa in South Africa is at $60 million whereas the LAMP in Malaysia along with the Mt Weld development with a projected output of 20.000 tpa is in the $1 billion dollar mark equaling that of MCP’s Capex for the Phoenix project with an output of 40,000 tpa.
It is very obvious that SX techniques being implemented into the GWMG installation are much more simplified and more economical in fabrication which in turn will result in a more cost effect operation. Because of the modular design aspect of entire facility expansion to higher output is much more economical and cost effective. That is the expertise that GQD brings with it as those techiques have been applied in China and are in addition incorporating the environmental requirements of the South Africa government.

By: Philip Mergenthaler

Philip Mergenthaler — Tue, 02 Aug 2011 20:20:52 +0000

I have read all these discussion comments. Get the picture straight. SELL ALL STOCKS AND RAISE CASH. Maybe alot of silver $ gold miners. Especially those in North & South America where nationalization is NOT AN ISSUE. Governments will try to secure revenue in alot of countries around the world. WE ARE NOT IN A DOUBLE DIP because we never got out of a recession. ALL STOCKS ARE OVERPRICED BY AT LEAST 50% in USA. Whoa now Wilber!!

By: robit

robit — Mon, 01 Aug 2011 13:18:59 +0000

Boris > Thanks for another nice bit of info. Vacuumschmelz itself and it being sold to a US based group are both VERY interesting. The Malaysia facility would seem to be quite an incentive for the government to give Lynas the approvals they need.

http://www.omgi.com/product-Vacuumschmelze.html

By: Boris

Boris — Mon, 01 Aug 2011 08:10:17 +0000

@ Toly

Well if this can help – LCM acquisition anouncement in 2008 says 27 people
(www.miningtopnews.com/great-western-minerals-group-signs-letter-of-intent-to-acquire-less-common-metals-ltd.html)
and current group photo (assuming that not all work first shift) shows 23 people
(www.gwmg.ca/images/GalleryImages/LCMgallery/fullsize/lcm-group-photo-DSC_0534.JPG_720.jpg). So one would think arround 30?

By: Boris

Boris — Mon, 01 Aug 2011 07:52:50 +0000

v
@ 4now
Well, Siemens used to own Vacuumschmelze.
And Vacuumschmelze people know really well how to make magnets.
Not long ago Vacuumschmelze was bought by OM Group
(www.finanznachrichten.de/nachrichten-2011-07/20701097-one-equity-partners-sells-vaccumschmelze-hanau-to-om-group-inc-usa-015.htm)
which specialises in chemicals. And Vacuumschmelze has a plant in Malaysia ??? Well, this may be a long shot….

By: Boris

Boris — Mon, 01 Aug 2011 06:42:30 +0000

@wwwater
Just a small comment – most of magnet producers would love to have reprocessing facilities of any kind of material scrap in house, with exception from what I think Shin Etsu has (www.rare-earth.jp/e/products/pro_shokai.shtml).
Most of magnet producers now buy either RE metals or RE based alloys ro make magnets, and wory how to get rid of scrap produced by grinding and cutting.
Now, you mentioned processing step No.3 – separation and extraction….. which would fit nicely into mine to magnet – gives you rather constant feedstock to extraction plant (some 6000 tpa Nd+Dy, gives you some 18000 tpa grindings, which would feed nicely some 10 separation plants of 2500 tpa capacity, yield included) and you get substantial proportion of Nd+Dy back. Think it fits into “right size” and “Dy is the key”. Just a thought anyway.

@Jack&Gareth
Thanks for running this place. One of the livelinest discussions for a long time.

By: wwwater

wwwater — Sun, 31 Jul 2011 18:47:25 +0000

BYRON CAPITAL UPGRADES GWG TARGET PRICE WITH STRONG BUY

Based on our existing, admittedly conservative rare earth price deck, we maintain a STRONG BUY rating on GWG, but we are raising our target price to $3.80 from $3.50.

By: Toly

Toly — Sat, 30 Jul 2011 21:59:35 +0000

4now or wwater, can you tell me LCM’s production quantity for 2010 or even q1, 2011 in tonnes? Also can you tell me the total number employed at GWM and LCM…

It appears total regular wages for all divisions included in the filings (including benefits) is ~ $800… Can you confirm this?

TIA…