DNI Cashing its Bucton lotto ticket. Posted and copied from Stockhouse.
I've been waiting for this day and it couldn't come at a better time. This news is no fluff. Going to get some traction when its digested and tested. Plus a little cash for DNI
DNI has had this Bucton asset on the shelf since current CEO Dan Weir and team took control. The PEA was developed a predecessor team with positive IRR in 2013 The deposit is a huge bulk poly metallic open pit mining project with many Rare Earths. In 2013 when they developed the resource, falling commodities caused the market to shun the high CAPEX needed to move anything. I always knew that at some point something in that asset would go up in price and become a hot ticket for somebody..
That time is now. Many investors have been trading their expensive paper in Marijuana companies for cheap battery metals paper. Vanadium is especially hot right now.
If you look into the DNI Vanadium resource and PEA study, then compare this to the Prophecy Development Group PCY You'll see they have a black shale deposit as well with PEA study completed. There are sensitivity charts where you can see the Financial numbers were worked with much lower (50% less) Vanadium pricing and still show a 50% IRR. The sensitivities also show numbers for the Buctons lower bulk deposit grade. With the size of the Bucton deposit, If it were me, with the higher V205 pricing, I would raise the cutoff grade, thereby raising the grade to the pit and still have a large enough deposit to make sence. Since Vanadium has gone up 500%, plus the Cobalt and Lithium increases, DNI's Bucton deposit is now worth a lot of money to DNI esp at a time when they need cash.
Early in 2018 China ruled that all Chinese steel producers had to double the Vanadium added to their steels. This plus the coming increase in VRB Vanadium Redox Batteries are responsible for the increase in pricing.
This Press Release is going to get some traction when it gets fully digested.
One thing to note is DNI is not planning to produce anything other than Graphite. Current mgt has no obligation to spend time or $ here. They have one of the best low cost graphite deposits on the planet, almost have their green light licence to mine and could finance/develop and produce graphite as early as June 2019 since they have a current offtake agreement with Korean Graphite requiring this.
Vanadium or any other non graphite deposit they have, are going to be JVd. If anything becomes of the asset, DNI can decide to participate or take the Royalty and move on. This asset is developed enough that I believe there will be some that argue DNI should follow a new path to produce Vanadium or Cobalt. Also really good to hear about Cobalt and Vanadium assets in a safe jurisdiction. I believe a coming increased valuation and interest is going to help DNI to cheaply and profitably develop its Vohitsara and Marafody graphite deposits.
Imagine if the planets align in the next 6 mths with DNI getting their licence to produce graphite within short weeks, then raises a few million to purchase their 6000tpy plant from China, has it delivered in 90 days.
It should soon be clear why DNI decided to settle with CGM and move forward with the business plan.
Ill say this again. This press release is going to get some traction when the market figures out, what it means and that the Bucton Deposit has some value.
Checkmate28 Onwards and upwards JMHO
AI
