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Monocle
fyi - I submitted the FOIA request to DoD for the DoD briefing materials to the congressional defense committees as recommended by the Senate Armed Services Committee in its report for the NDAA FY 2018. Will try to post or upload the info if and when I get it.
This is what I stated and asked for:
"In Senate Report No. 115-125 which was the Senate Armed Services Committee (SASC) report accompanying Senate Bill 1519, precursor to the National Defense Authorization Act for Fiscal Year 2018, the SASC included the following report language:
Domestic production of Scandium
Given the planned initiation and production in the United States within the next 5 years of as much as 100 metric tons of Scandium, the committee directs the Secretary of Defense to provide a briefing on the potential defense and industrial uses of Scandium to the congressional defense committees by December 1, 2017.
I request that a copy of any records or documents containing the following information be provided to me:
Unclassified briefing materials, to include handouts or Power Point files, used or provided by, members of the Department of Defense, including its components or military services, to the congressional defense committees in response to the above report language regarding the domestic production, or potential defense and industrial uses, of scandium. If such documents have an overall security classification, then please send portions of the documents with redactions needed to downgrade the releasable portions to unclassified."
Piggyback a little on your news:
[url]https://www.bloomberg.com/news/articles/2018-01-12/world-s-commodity-engine-roars-to-another-record-with-xi-at-helm
As usual, PG provides great info. One additional clarification, if I may -- current spot price for copper in USD is $3.2950 per pound.
Monocle
I nearly pulled the trigger several times, but I was nagged about the scandium issue (how valuable was it to national defense/security, and the long term pricing). I wanted to see more concrete info about the above two issues, and how the scandium demand would attract the large Capex investment. Looks like I missed the boat with the recent price upswing. I keep monitoring NIOBF obviously and may enter into the fray later after I get more info.
Thanks for the info, bc. I wasn't aware of that office, and kudos for your proactive input to them.
Despite LM's flippant remarks, I'll try to see if I can get a copy of the DoD report to the Armed Services Committees just after New Year's Day and post it if I'm successful. My guess is that it'll be a PowerPoint slide deck.
Happy New Year to you.
Has anyone been able to get a copy of the DoD report on its need for scandium that was supposed to be provided to the Armed Services Committees in early December 2017?
If not, is anyone willing to submit a Freedom of Information Act (FOIA) request for it?
It may be an indirect hint to the Dept of Interior's future proposal on what critical materials should be targeted for domestic production and protection. If DoD says scandium is very important for national defense needs, then one would expect Dept of Interior to amplify that message.
Are you okay?
Entertainment value.
Rarity that something "positive" is dropped on a Friday afternoon, after close of trading.
Avg grade of Scandium for NIOBF's Elk Creek project is ~72 ppm.
I don't know what the estimated amount of scandium is for the Jeddo Coal pilot project. It may be as Todd pointed out that, in the end, it's just not economically feasible due to the lack of total amount of scandium to justify the added cost of trying to recover the rare earth minerals, to include scandium, from coal and coal by-products and possibly from the overburden.
However, the notion of possibly recovering rare earth minerals from coal/coal by-products appears to be interesting enough for Dept of Energy to invest nearly $23 million USD for 4 pilot projects/efforts, and for the Secretary of Energy (and local Congressional reps) to visit the sites touting their interest, and to have a block of presentations at a Dept of Energy-sponsored conference on rare earth minerals. See conference sessions agenda -- "Rare Earth Elements" at the end of the web page at the following link, and you can open the presentations:
[url]https://www.netl.doe.gov/events/conference-proceedings/2017/2017-project-review-meeting-for-crosscutting-research-gasification-systems-and-rare-earth-elements-research-portfolios
Given the Administration's support for the coal mining industry/employment, and with the potential to establish a domestic supply for rare earth minerals, I can see more Govt-funded efforts to back technological development for an economically feasible way to extract rare earth minerals at coal mining sites.
As to Landmark's point on what's the relevance of this. Knowing about and keeping track of potential alternative supplies of scandium can affect NIOBF's price (either pps, or future market price for scandium). But Landmark said the Dept of Energy initiative has already been talked to death on this Board and that bringing it up again is flogging a dead horse, so this will be my last post on the Dept of Energy's project.
Concentrations are very low?
Well, article I read said:
"At Jeddo Coal in 2015, researchers for the department’s [US Dept of Energy] laboratory took 135 samples, mostly from drill cores. They found average concentrations of 407 parts per million of all rare earth elements combined and 102 ppm for scandium, Coal Age magazine reported in its January/February issue."
102 ppm for scandium is not "very low".
Another slide deck - systems perspective on recovery of REE from coal.
[url]https://www.netl.doe.gov/File%20Library/Events/2017/crosscutting/20170322-Track-C/20170322_Plenary-4_NETL_Summer.pdf
You're probably right as I read more about recovery of REEs from coal.
Link below to Dept of Energy's March 2017 slideshow on recovery of REEs from coal and coal by-products initiative. Price for scandium that they use is higher than used by NioCorp in its FS.
[url]https://www.netl.doe.gov/File%20Library/Events/2017/crosscutting/20170322-Track-C/20170322_Plenary-2_NETL_Alvin.pdf
Any chance NioCorp explores new approach (see Univ of Kentucky news release below) to recovering scandium? Or is the UofK process coal-specific? Anyone know?
Public Release: 13-Nov-2017
UK researchers produce high grade rare earth concentrate from coal source
University of Kentucky
LEXINGTON, Ky. (Nov. 13, 2017) -- University of Kentucky researchers recently produced nearly pure rare earth concentrates from Kentucky coal sources using a novel rare earth recovery process.
The process recovered over 80 percent of the rare earth elements present in the feed sources. The concentrates were comprised of more than 80 percent total rare earth elements on a dry whole mass basis and over 98 percent rare earth oxides.
Critical elements such as neodymium and yttrium represented over 45 percent of the total concentrate, which are important due to their use in national defense technologies and the high-tech and renewable energy industries.
This achievement was made possible using a patent pending process developed by Wencai Zhang and Rick Honaker and funding provided by a U.S. Department of Energy Cooperative Agreement (DE-FE0027035).
"The novel rare earth recovery process is low cost and more environmentally friendly than alternative technologies such as solvent extraction," said Honaker. "We are excited about the new development and look forward to testing the process in our pilot-scale facility which will be operational during spring 2018."
Another unique feature of the new rare earth process is that scandium, a highly valued rare earth element, is efficiently separated from the other rare elements and concentrated as a separate product from the circuit. The process will be part of a ¼-tph mobile rare earth recovery pilot scale plant being developed and tested by Honaker's research team as part of the U.S. Department of Energy project.
Latest status on Congressional conference to iron out House and Senate differences on the GOP tax plan. No mention about the FIFO rule for computing the tax basis for sale of stock.
[url]https://www.bloomberg.com/news/articles/2017-12-12/panel-set-to-meet-but-real-work-is-in-secret-tax-debate-update
I raise my hand for smoking what you're smoking. :)
Waygu beef on Old MacDonald's farm, and Willie Wonka's Chocolate Factory ... you can't get any better than that.
Todd, that post is a classic. I was getting hungry reading it until I got to the Titanium part.
If you're a stockholder (of any company, not singling out NIOBF) who files US tax returns, beware of the Senate's proposed change in the method to compute capital gains from the sale of stock from a taxable stock brokerage account (would mandate a FIFO approach).
Bloomberg article at link below:
[url]https://www.bloomberg.com/news/articles/2017-12-06/this-little-known-tax-proposal-takes-aim-at-your-trading-account
Walter's Linked In page:
[url]https://www.linkedin.com/in/walter-caers-05a89711/
Darn, Spunkmeyer. Couldn't you have chosen "Ripley" as your nom de plume -- better ending for that character in Alien 1?
Thanks, PG, and many thanks to Klaus1006 on SH bull board.
You bad. :)
fwiw - article explaining how tax treatment of interest expense could affect fund raising strategies:
[url]https://taxfoundation.org/interest-treatment-house-gop-tax-plan/
What the article was referring to was the proposed tax treatment of interest (that corps pay).
The House version proposes to cap net interest deduction at 30 percent of earnings before interest, taxes, depreciation, and amortization (EBITDA).
The Senate version proposes to cap net interest deduction at 30 percent of earnings before interest and taxes (EBIT).
Due to the large capitalization costs miners usually have, they generally pay a lot of interest on debt.
So, lower corporate tax rate giveth; tax treatment of interest taketh away.
Thanks much, ML, for the link to the article.
Plight of nearly all junior miners.
[url]
can someone explain why japanese game show 'slippery stairs' hasn't made its way to our part of the world yet pic.twitter.com/cd1BHvvoKl
— juan (@juanbuis) November 20, 2017
LCP, rather than just say "gonna fail", why don't you objectively explain your reasons? A pros/cons list would at least be more enlightening than just trashing the stock.
NEgoodlife
Did you post or share your financial modeling (with assumptions) with the others on this board? If you did, can you provide me with the message number so I can view it? (or repost?)
Thanks
R
Extracts from article:
The electric vehicle revolution is accelerating, and it will inevitably change the orientation of the mining industry, Robert Friedland, executive chairman of Ivanhoe Mines, argued during a presentation at the Sprott Natural Resource Symposium held in Vancouver in July.
Friedland said that rapid urbanization, combined with efforts to reduce air pollution, will lead to a ramping up of electric vehicle production. And the demand for the metals needed to build them — including his favourites copper, platinum, palladium, zinc, nickel and cobalt — will rise as a result.
“This is an era of unprecedented change, it’s really happening,” Friedland said. “The handwriting is on the wall. For those of you who deny this phenomenon, you’re going to miss this massive disruption opening soon at a theatre near you.”
“Air pollution isn’t just in China. It’s in Paris, Greece, Madrid and Mexico City,” he said. “In Beijing, the government is on an air pollution jihad. It’s engaging in the largest enterprise ever to clean the air, and they’re going to do it because China is a command economy.”
He noted an electric vehicle currently contains 150 kg of copper — or four times more than a conventional vehicle — and even more copper will be required to electrify developing countries, he said.
“We don’t have enough copper being discovered to meet future copper demand. We need much higher copper prices to stimulate the painful enterprise of exploration, development and production. We’re just getting on the edge of a very steep ski slope and looking down over the edge.” Lesley Stokes, The Northern Miner
[url]http://www.northernminer.com/news/sprott-conference-friedland-pitches-metals-used-electric-vehicles/1003788520/
And you gotta love Elon Musk ... just unveiled a new Tesla concept roadster EV -- 1.9 seconds from 0 to 60 mph (holy geezus), with a 600 mile single charge range. Already taking advance orders -- $50 thousand down payment towards $200 thousand purchase price, expected to start production in 2020.
And the new roadster news was dessert to the main rollout by Elon of the new EV 18-wheeler truck (0 to 60 mph in about 5 seconds?) with a single charge 500 mile range. Yep, the truck will out accelerate most run-of-the-mill cars on the road.
I'm sure they use a lot of copper in those.
Nice find, Stark. If that is validated at the higher temps/actual conditions, no doubt scandium will be highly sought for what could be a huge potential market.
One part in the Outlook section of the MD&A that I did like:
"Excelsior is targeting the completion of the project financing in the first quarter of 2018 and, assuming all permits have been received, construction would commence thereafter. Copper production from the Gunnison Project is expected to begin nine months after construction is commenced."
1st quarter of 2018 isn't that far away. The way the Excelsior folks have been chugging along, I think they'll make that schedule milestone for completion of project financing (but please without selling off more gross revenue royalties).
Thanks for the heads up, Masslanding.
I think it's a good sign, too. I expect we'll shortly see a supplement to the shelf prospectus for the first sale of securities to raise operating cash and perhaps some for construction.
Excelsior currently has about $6 million in cash/ST equivalents, and has to pay off the final installment payment (~$2.2 million) for the Johnson Camp Mine purchase before December 31, 2017. They don't want to put themselves into a cash liquidity crunch, so I think the fund raising will come pretty shortly (if involves equity sale, hopefully it'll be after a good pop in the company's share price). Of course an equity sale in the form of common shares sales and/or warrants will likely result in some shareholder dilution, but for a damn good cause.
If you want to read the prelim short form shelf prospectus, or the recently filed MD&A (on Nov 14th), you can download them at SEDAR, link:
[url]http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00025928&sub=1
NEgoodlife
Can you explain why you believe "I don’t think financing is an “if” question" ? I'd like to hear your reasoning or logic.
Forgot to provide the one below, courtesy of Todd:
[url]https://www.linkedin.com/pulse/excelsior-mining-corp-overview-todd-wangsness/
Nick
Links below to some informative info and other materials about Excelsior Mining. Others on this board likely have other better links.
[url]https://www.caesarsreport.com/reports/report-excelsior-mining-copper-superior-cash-cost/
[url]http://www.criticalinvestor.eu/analysis/copper/critical-qa-stephen-twyerould-president-ceo-excelsior-mining
[url]https://ceo.ca/min
[url]http://www.proactiveinvestors.com/companies/stocktube/8074/excelsior-mining-sitting-on-a-world-class-copper-project-in-arizona-8074.html
[url]http://www.streetwisereports.com/pub/na/excelsior-mining-very-close-to-being-fully-permitted-re-rating-awaits
[url]https://secure.kaiserresearch.com/s1/CompanyProfile.asp?ReportID=400337&_Type=KRO-Profile&_Title=Excelsior-Mining-Corp-MIN-T
[url]http://www.criticalinvestor.eu/analysis/copper/why-excelsior-minings-perceived-permitting-risks-could-be-unwarranted
Yeh, it did, but luckily (but not by much) at a different sp. My bid yesterday was for EOD. But, silly me, I put in a bid before I left home this morning for 3500 shares at .88. Needless to say, that took quickly when the market opened. I sensed it was bad when my wife texted me that my buy order was filled early this AM.
I'll definitely buy more at these prices.
Junior miners took it in the shorts today, eh?
Boy, morale down on the Niocorp board.
I guess the most "logical" explanation for the sp drop today -- ~2% drop in copper price due to concerns about China growth. Shouldn't drive daily sp for Excelsior Mining, but I guess it does for some. As you said, good time to buy more on the dips.
Milkman - that last line was a classic. I busted a gut reading that one. I hope they do put it in reverse and find some financiers for their project.
Expect final EPA permit decision (and decision on aquifer exemption as a source of potable water) in early January 2018. Then we have to wait an additional 30 days to hear whether someone wants to challenge EPA's final decision.
Hopefully, we'll hear, before then, about a contingent financing package for Spring 2018 start of construction/well installation.
We may hear of a private placement deal, too, before year's end. I just hope no more selling of future royalties to Greenstone. They already have rights to 3% of future royalties.