Reply to Rio Tinto's entry into to the Scandium Market:
Question:
Jim-
"You are all probably aware of Rio Tinto’s entry into the Scandium market via the elementnorth21 venture. Could you offer an opinion in regards to this market competition in the Scandium market, and if a lower price point offering is a concern for Niocorp moving forward?"
Reply:
Rio Tinto's effort to more widely commercialized scandium products should be very much welcomed by all prospective scandium producers.In order for large prospective consumers of scandium, such as companies in the aerospace, vehicle transportation, and energy/battery industries, to move aggressively toward incorporating scandium at scale into their manufacturing operations, they will want to see multiple scandium suppliers serving the market. Ensuring diversity of supply for specialty materials like scandium is key for these companies, as it helps them manage supply chain risk.
We believe that multiple producers of scandium will create a rising tide of demand that will benefit all. After all, several independent analyses forecast latent demand for scandium in the several hundred tonnes / year range, if not higher.
Pricing for various scandium products is likely to vary significantly as these markets mature. Some scandium oxide and scandium master alloy products will be sold as commodity products. But other scandium products sold by producers are likely to be custom chemical formulations or alloys or fabricated scandium alloy products that are custom engineered for a specific application. Pricing for these types of value-added products is set between the materials producer and the customer and is often based on the value delivered to the customer of the custom product, rather than an advertised 'commodity' price for scandium.
Hope this is helpful.
Jim
Because there is not likely to be a futures exchange for a specialty material with so low volumes as scandium, pricing will large be determined
I think Niocorp's position in the market will be a welcome addition as well; not only for Scandium, but the for Niobium, & Titanium! Let's not forget Scott Honan is working on a "proprietary critical CO2 extraction method" that is ongoing. That development of Niocorp's Scandium alloy is ongoing as well! All of which has been previously posted on this board.
"If at all possible".... M.S.
CONJUNCTION
"if it takes me seven years, I shall do it"
(often used in indirect questions) whether.
"he asked if we would like some coffee" · [more]
synonyms:
whether · whether or not
NOUN
a condition or supposition.
"there are so many ifs and buts in the policy"
2014 to 2021 is SEVEN YEARS!!!!
All IMHO & do your own DD...
Chico
