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MWM

06/15/11 8:47 AM

#1041 RE: Joeiniowa #1040

That quote is exactly what stuck out to me as well!

The annual demand for electrolytic manganese dioxide is currently around 270,000 tonnes. The rise of electric vehicle sales to approximately 10 million units per year, which according to industry projections could occur between 2015 and 2020, could increase the annual demand for EMD to about 5 million tonnes,” stated Mike Macleod.

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faust357

06/15/11 9:39 AM

#1042 RE: Joeiniowa #1040

That would be a great move,but requires the ability to think 2,3 or 4 moves ahead-NOT the typical style of high-level American management,imho.Hope to get some cheepies in the next few days..
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value1008

06/15/11 10:46 AM

#1045 RE: Joeiniowa #1040

>Why Ford does not come to AMY and put in $100M to guarantee future supply is beyond me.

Joe, i surmise that potential JV partners are patiently awaiting the results of the pilot plant study and perhaps the pre-feasibility study toward end of Sept. Someone remarked a while back that some of these interested parties may get the results earlier via a non-disclosure agreement.

If AMY is, in fact, going to opt for a much expanded plant to be capable of producing, not just 110M lbs/yr of EMM (the old model), but 600M to 900M lbs/yr of EMM and EMD/LMD, i think the capex costs for getting all the way into production (i.e., building the plant, procuring the mining equipment) will surely be more like $200M to $300M, not the $90M-$100M that was the estimated capex for the previously planned mining scenario.

Nevertheless, $200-300M is NOT really a steep figure. Some of those rare earth and silver plants being planned are like, $500M to $1B in capex costs.

The math shows that if AMY produces 600M-900M lbs/yr of EMM/EMD/LMD at, say, $1.40 per lb gross profit on the EMM/EMD, and $6 per lb profit on the much smaller amount of LMD, and a JV partner gets just 20% of those gross profits, they would see their $200M-$300M investment returned to them in about a year. After that, it would all be pure profit for such a JV partner. What a gold mine... er, that is, a MANGANESE MINE... a money-making machine.