Some Q & A from this afternoon. I tried to remove the names of the people asking the questions but left in who answered them.
Q: once in commercial production, how long of estimate to see positive cash flow and possible profitablilty
Scott Honan: Good question, Actually, we will start generating revenue prior to the onset of full-=scale commercial production. Our payback period, once we achieve full-scale production, is estimated in our feasibility study to be only 3.4 years.
Q: What are the internal projections/goals regarding the timeframe to achieve required financing (a month/year response would be greatly appreciated!).
Scott Honan: Hi, We are not able to give a precise estimate of that. As we have said many times before -- and we have been through this process many times before -- capital pools form for projects like this when they are ready to from. But I can tell you that the response we are receiving from a wide variety of potential project finance interests is very high. We have been very gratified with the level of interest so far.
Q Are you in contact with the DoD regarding its presentation to congressional committees?
Scott Honan: We are in contact with the DOD nearly continuously. We give them continual update briefs on the project, and on market intel that we gain both on niobium and scandium
Q: Any update to the German Loan
Scott Honan: We have received in principle eligibility for the German UFK program, which is step 1 of 4 steps in the approval process. We continue to aggressively pursue this as part of the overall financing effort
Q: Is the German Loan contingent on financing or is it separate?
Scott Honan: The UFK loan guarantee is an integral part of the debt package for the project. We have retained Northcott Capital to help us with the UFK program, as they have direct experience both with financing mining projects and with navigating the UFK program
Q: How much equity is needed to open mine? how much debt? Thx
Scott Honan: Our general plan is around 60% debt and 40% equity, which we feel is the right mix based on the FS results.
Q: How often does the German government extend loans to U.S. companies? never heard of this before? Thx
Scott Honan:The trigger for the UFK loan guarantee is the contract we have to sell Ferroniobium to Thyseen Krupp. The value of the loan guarantee is based on the amount of FeNb that TK would purchase under the contract, and use in their metallurgical operations in Germany. I suspect not too many mining projects actually satisfy the criteria here.
Q: Hi Scott, is there a concrete plan to increase shareholder value? I mean not only by securing financing ot scandium offtake? As you already mentioned, securing financing is not an easy job, but if the share price decrease continues like the last weeks and month, we will be in an even worse condition. Is there a plan to stop decreasing?
James Sims: Hi, This is Jim Sims. There is a very detailed program we are launching shortly that is aimed at increasing the size and number of our shareholder base, on a global basis, and to amp up education and outreach on the tremendous investment opportunity that this project represents
James Sims: To continue with your question, publicly traded companies like ours don't have any direct control over our share price (as I'm sure you know). What we focus on is three primary goals: (1) execute on our business plan; (2) seek to increase long-term shareholder value; and (3) aggressively reach out to and educate current and new investors all around the globe on the investment opportunity that we see in this Company.
Q: What is the strategic value to the country to have this project go?
Scott Honan: Our feeling is that the strategic value is substantial. The US is completely reliant on imports at present for all of its Sc and Nb needs, and highly reliant on imports of Ti. These superalloy materials are critical to any number of defense systems, and in fact the DoD, through the Defense Logistics Agency, is currently stockpiling FeNb in the National Defense Stockpile
Q: Mark, Jim, & Scott: Great job, pleased that the three of you are leading the company! Safe Travels.
James Sims: Thanks. We love being able to tell the amazing story of this Company and of the Elk Creek Project! Mark, Scott and I are in Europe this week doing that very thing with current investors, potential new investors, and with a variety of commercial interests that will be important to the future success of the Company.
As always the team did a great job!!
AI
