Niobium, and Beyond …
April 14, 2010 Press Release: “Sarissa Resources Announces Formation of an Advisory Board to Develop a Strategic Focus on Corporate and Project Development”
I am sure much of this has been covered, but to keep my impressions separate I am writing this without the benefit of the board first, so some of this can be a review for those with real short memories…
A truly incredible and transformative release! Are you kidding me? Could anything be more hidden in plain sight? How fortunate you all are to be shareholders here, because this will be transformative for you as well! You still think they are fumbling for money to drill a few more holes to eek out another technical report to try and tell the world they have some minerals? Think again!
I will make five major points …
1. Joint Venture! Given Scottspeak (under-promise and over-deliver), it could not be more clear. It is in the title of the press release for heaven’s sake; unless someone wants to spin another meaning on “Corporate Development.” Sure we heard comments at the PDAC, but this is in a PR. The Advisory Board is being formed “to provide expertise and consultation” for the “Nemegosenda niobium property and corporate development.” Doesn’t that just scream JOINT VENTURE at you?! If he was going to flip this property at a dime or even a quarter (which he could have done ten times over imo), he would not be taking this step. Plus, the idea of a JV is cemented in with the other points. Tied in with the PDAC comments, we have every reason to expect a JV sometime this year. Something Asian still looks to be a good bet; China and India were mentioned in the PR, and Korea was hinted at previously. Think Peterson knows some folks on that continent?! Wow! And imo, this is not only to create new opportunities, but to evaluate opportunities already on the plate.
2. We have REE’s! Again, the hint has always been there, but this is the second PR in a row to mention REE’s, after no official comments for over two years if I am not mistaken. By the background presented, there is little other reason to bring Yeates on board, except for his expertise in the “design and installation of Rare Earth Element extraction plant equipment.” It may a little early to speculate on a resource value, but since some of the preliminary data suggest the REE’s in aggregate could be as much as the niobium, we could cautiously estimate 25% - 50% of the niobium value in REE’s at this point. Since the niobium could be $30B to $100B, the REE’s could be $7.5B - $50B by this approach. Hey market, hello!
3. Quality People. I was blown away by the enormity of Yeates’ and Peterson’s qualifications. I am sure they have been expounded already, so I won’t repeat them here. Scott says it best “The knowledge of project development and contacts in the international and government world that we can gain through these two new additions to our team is unparalleled.” These were also deemed “initial” appointees, so it looks like we will soon be hearing about more. Also, don’t forget, a year ago they were dealing with scum operators like Hot Web and Converge Global. Now they are dealing with world class folks like Yeates and Peterson, and likely key people in Asia and around the world.
4. Why now? Since this PR fits so nicely with my developing DD mosaic, I took this point for granted until someone pointed it out to me. The timing of this PR in substantiating the concept of a JV this year is enormous. If they were really only seeking to drill holes and prove up the resource, a PR like this could be a year or more away. The fact that we get it now speaks volumes. They are definitely far enough along (including as of yet unannounced development) to be talking JV now. Not only that, it is smarter all the way around, and better for shareholders. Yes!
5. Intangibles. This PR suggests a lot of little things. In many ways, you have to love Scott’s integrity of character. Despite his vast expertise, he is smart enough to bring on more to be sure to do this thing right, with the people he brings on shoring up areas where he may be a little light. I also noticed that this was the third PR in four weeks, so he kept his word on comments uttered at the conference, and implies his priority on shareholder value. While much of his business plan is still a little vague, this makes it a fair amount clearer. This may not be moving as fast as some may like, but he is taking his time to do it right, and ultimately enhancing shareholder value way beyond the first (or second) deal to come along.
And some of you may remember, Scott did an interview early in 2009, in which he mentioned an 18-month plan of development. At the time, many pink players moaned, as 18 months is 3 lifetimes in the pink world. But that 18 months takes us to late summer or fall, and it is amazing how this is all seeming to come together and many of us forget some of the breadcrumbs we have been given. I am sure Scott would tell us all if he could, but first, he won’t predict, he will only report accomplishments, and second, imo there are some things tied up in confidentiality agreements for the moment.
Barring some conspiracy theory about some market manipulation by some player like NITE, it must be that only the existing longs are heeding the call at this point, because I don’t know why we are not at .25 already. Be that as it may, with the expected developments, it won’t be long until the world is (literally) beating a path to Sarissa’s doorstep. Some think we are already in the early innings of a campaign that will climax with the JV announcement, and we cannot be sure of the timing. With the right news in this process we could be .25 overnight on the way to .50 and $1 and beyond within 12 months imo, so you know what to do with every bit of confidence!
