Australian Shares Sparty's Blog
Comments on this blog should never be taken as investment advice
Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy.
Main Forum•GGG 100% of Kvanefjeld: 6.6 Mt total rare earth oxide, 350 Mlbs U3O8, 3 Blbs zinc
-
"Kvanefjeld's significance is underpinned by the world's largest JORC‐code or NI 43‐101 compliant resource of rare earth oxides with substantial resources of uranium and zinc (contained metal inventory of 6.6 Mt total rare earth oxide, 350 Mlbs U3O8, 3 Blbs zinc). Three drill rigs are currently operating on the recently discovered satellite deposits, with the program anticipated to lead to a substantial increase in the project's overall resource base."
-
Hi Sparty, Mining for production at Kvanefjeld will happen, in my best estimation, in 8 years. At worst 12 years. I see GGG as a share to hold for retirement or inheritance. It is too long for me.
Alite
-
Hmmm, I think that with such a vast resource and such a very low market cap it is worthwhile having a stake in GGG. They are a sitting duck and I wonder when China will make a move on them.
-
I think China knows that their domination of the REO market will evaporate when the US and Australian players come on line. I have read that there will be an excess of light REOs by 2016. GGG has mostly light REOs. Why would they buy into GGG? Alite
-
Hi Alite, China needs REEs, Uranium and Zinc.
But more importantly in a word "Hegemony".
They can buy GGG for a song (Mkt Cap $181m) and get the world's largest JORC REE resource and so prolong their dominance for several decades longer. Whereas once GGG comes into production the whole REE game changes
GGG also have H-REEs as shown below....
Click image to enlarge -
Sparty, You may be right; China are very active in REO. They are continuing to manipulate REO prices with their announcement that their biggest REO producer / exporter Bautou has been completely banned from exporting rare earths for "environmental reasons". My comment of manipulation may be cynical, China may be cleaning up their act, but it may also be price related as REO prices have dropped of late. Maybe Australia's first start up REO miner LYC is worth a flutter as the Chinese drive up REO's prices.
-
GGG is a long game but China may be in it.
