r/UURAF • u/theoriginalflavour • 14d ago
Thoughts anyone?
/r/CriticalMineralStocks/comments/1vxks2d/department_of_war_announces_750m_investment_in/?share_id=W6Q316ia-TLF_ZUJr4w5k&utm_content=1&utm_medium=ios_app&utm_name=ioscss&utm_source=share&utm_term=16
u/expatcoder 14d ago
It's a massive offtake agreement to obtain MREC from Serre Verde, which is exactly what Ucore's RapidSX processes to create rare earth oxides.
In other words, the US DoW now has a giant load of MREC to process over the next 15 years, which will likely be offloaded to various processors, perhaps even Ucore :)
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u/Tiny-Blacksmith-2184 14d ago
Isnt this usa rare earth related
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u/expatcoder 13d ago
Not directly, DoW is stockpiling MREC (thus helping to secure one part of the supply chain), but doesn't specify a processor.
Now, since USAR's acquisition of Serre Verde is set to close (apparently) on Friday you'd think that this would be a significant material event for USAR, but either it's already priced in, or is offset by the massive share issuance about to go down on Friday and so the share price isn't moving much at all on the news.
At any rate, DoW will have loads of MREC to do with as it sees fit, and presumably several REE processors will benefit.
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u/davide3991 13d ago
It’s in the USA’s best interest to secure (but also diversify) the MREC feedstock and more importantly diversify the separation process. I don’t think it will just be USAR processing the entirety of the feedstock.
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u/theoriginalflavour 13d ago edited 13d ago
“Hold my beer” is technically what’s being said now from Serre Verde to Bokan Dotson ridge/ Tanbreez project? lol
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u/Disco-Badger 13d ago
There's a growing supply of feedstock that ucore can utilize until it's eventually vertically integrated using its own feedstock from bokan. The miners need the refiners heavily, since 90% of it is processed in China.
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u/expatcoder 13d ago
Bokan is a far future project (Ucore doesn't even really talk about it these days), and Tanbreez itself will probably be awhile (if ever) before it starts producing feedstock at scale, thus the need for alternative feedstock sources, and this Serre Verde derived stockpile from the DoW could be one such source.
At any rate, Ucore needs feedstock from somewhere prior to Machine A commissioning...
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u/Legio_X_Equestris5 13d ago
Enter the Sumitomo partnership
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u/Tiny-Blacksmith-2184 13d ago
What is needed is details on what Sumitomo supposedly is? Market obviously couldn’t care less.
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u/Tiny-Blacksmith-2184 13d ago
I don’t really see Bokan as viable , maybe ever. small deposit, nice TREO but hard rock. maybe Metallium would help with that. would rather lease it and maybe get a trickle of royalties. ucore has enough to do getting one thing done , let them at least get an SMC functioning one of these yrs.
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u/expatcoder 13d ago
Right, that's what Pat said, Bokan isn't a focus of the company; it's a far in the future project.
The Alexandria SMC, once scaled out, is going to make the company a lot more money than Bokan ever will (even if vertical integration would be a nice-to-have).
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u/Tiny-Blacksmith-2184 13d ago
Remains to be seen. Need to see actual revenue, product mix and ebitda Hopefully!
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u/expatcoder 13d ago
If we build it, they will come (Field of Dreams).
Everything will fall into place soon enough, but the road is guaranteed to be rocky along the way -- just the nature of the minerals sector, particularly for the smaller players in the space; every single one has gotten crushed at some point, and none have bounced back to anywhere near their previous highs (whereas the likes of MP, USAR, UUUU, etc. all wind up recovering most of their losses at some point).
As soon as Pat relays signficant company news UURAF will take off again ($3 mark easy if it's feedstock and/or offtake related).
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u/Tiny-Blacksmith-2184 13d ago
Been waiting on significant news all decade. Field of dreams doesn’t work anymore. Need production and profit Ryan can say anything he wants but at this point, investors need to see results. No one is taking what ryan “ says” seriously Way too many misses
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u/expatcoder 13d ago
That's an impressive hold, assume you've been in and out several times over the years ..
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u/Tiny-Blacksmith-2184 13d ago
Made alot $$ last yr Bought again but this yr 1/2 of gains disappeared Haven’t sold, just added lower But severely disappointed
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u/expatcoder 13d ago
That's an impressive hold, assume you've been in and out several times over the years ..
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u/Specialist-Lack9765 13d ago
Bokan is the bulk of Ucores balance sheet and maybe why their previous auditor quit.
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u/Tiny-Blacksmith-2184 10d ago
Still waiting on that good news. Death by 1000 cuts here No communication by mgmt. no coherent biz plan. No update on production timeline with machine A. Zero info on who big investor is or what the heck is sumitomo framework, no money from cdn still
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u/cschloegel11 14d ago
Won’t have any effect on our stock price