Scandium International Mining Corp (SCY)

[TMLonggun]

I'd say the exchange rates are pretty minor, they will have an effect, but not for years, and even then the rate at that moment in time when they actually have those costs (2017-2018+) is more relevant than whatever it is now. Currently I think it is in our favour.

I would go into more detail about this but it is a complicated topic and the answer isn't a simple yes or no, because there are times when mines benefit from both a weak and a strong currency. For example SCY is a Canadian listed miner that seems to have a Vancouver presence but has also borrowed and has its costs based in US, Aussie, and probably even Canadian dollars while they operate primarily in Australia. The HQ is in... Nevada I think yet much of the support and legal staff is in Canada and the tech staff is in Australia. We've been printing like madmen here in Canada and said we're keeping interest rates free so our dollar has tanked as well, but gold, silver, and other commodities then went up to match this devaluation, so mining costs went up with metal prices. I think their margins actually increased because of oil's decline but if that factor was removed the currency gyrations add up to almost no effect IMO. Most of our expenses are probably in CAD at the moment - I actually don't remember it has been almost a year since I read through the filings, but the answer is there if you want it (ie the breakdown of all of this.)

You can use a checklist if it helps you, but a mental checklist will serve you much better, since if you walk PDAC with a checklist some promoter will see you're green and take advantage of you. The answers themselves are often less important than the way they answer you.

http://www.inflationproofinvestor.com/support-files/the_eight_ps_of_resource_stock_evaluation.pdf

I would say questions like "Is this property wildly economic?" and "Does management have the integrity, the balls, and the skill necessary to get it done?"

The criteria for success is pretty straight forward. Either they develop into a profitable scandium mine or they don't.

The risk factors for this stock are the same as any other juniors with some extra risk for pioneering scandium - we aren't developing something with a known, quantifiable value and established market. There is environmental, permitting, and political risk. There is also geological and metallurgical risk (mostly mitigated) and risk factors associated with the need to raise significant capital in a bear market, excessive dilution, and there is also a high risk SCY's tech is stolen and copied in china and elsewhere for a small fraction of the cost. Mines also frequently take decades to develop so by that time-frame it might be another 6 years and it would still be within a completely normal time-frame of development. Time is one of our biggest advantages and adversaries.

Much like the uses for scandium the risk factors for its first mine are abundant and would take pages to fill. Go into this - and other mining speculations with your eyes open and be prepared to lose all of your money. You are in one of the riskiest sectors in the world, where risk and reward are at their highest. It would serve you well to be cognizant of this fact.