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walterc

07/23/18 3:36 PM

#39530 RE: tedro84 #39524

tedro

let's lift this discussion up to a higher level.

Niocorp’s scandium pricing was not set by Niocorp in its FS. It was set by a large number of independent experts who wrote and signed off on the FS. However, if niocorp moves downstream into specialty alloys, which is what they appear to be doing with IBC, then oxide pricing may not matter. Depending upon how the companies structure their business, the oxide price may end up as simply a transfer price. The profit would come from sale of the alloy. I do not focus on the oxide pricing debate. It is increasingly meaningless given the intent of most of these companies on alloy development, including Niocorp. That is where the real game will be, I think. Scandium alloys will be very application specific, meaning that the different alloys will probably have very different pricing.