a comparison of tanbreez and ggg REE's
given that the Greenland government is not going to change it's zero tolerance policy anytime soon, it is likely that ggg md rod mcilree will be soon changing his tune and saying kvanefjeld isn't a uranium mine, it's a rare earth mine.
he will tell you prices have gone through the roof and the project is now exceptionally profitable on rare earths alone. as a matter of fact he did so a few days ago, or maybe it was one of his minions, anyway somone did.
so why is this questionable
first, the prices he used were for REE oxides and ggg has said they will be producing carbonates
REE carbonate prices are only about 40% of REE oxide prices. So take the numbers that were being mused over and cut them by 60%
also while we know little about ggg's chemistry (because they won't let anyone including the board of the greenland company see the complete mythical feasability study where one would assume the chemistry is shown) they have said their recovery rate is a meager 34%. that means their cost of production and the amount of radioactive tailings they have to deal with (they also haven't told anyone how they are going to deal with them, how much that will cost or done the environmental work to tell them) but we can all assume it will be expensive.
so we have a company that thinks they are going to make a ton of money producing something that they have no idea how much it will cost to produce.
they are also assuming that the price will continue to go up because of rising demand and the chinese restricting supply of sales of oxides. instead the chinese want to sell finished products.
the problem with this logic is twofold
1st) some of the users will simply buy their products from the chinese instead of producing themselves after buying oxides
2nd) ggg and mr mcilree assumes there will be no new supply coming into the market to fill the void left by the chinese resticting the oxide sales. this is a fallicy, there are other REE deposits, including Tanbreez about 25k away (which are bigger and better than Kvsanejfeld's) and they don't have a uranium and thorium problem. these other deposits will introduce supply into the market (probably well before ggg can get there) and the pricing one sees today will likely fall as the supply increases which it will.
so we have a company that does'nt really know what its products will cost to make but
they are assuming that the price for the product (which price has been misrepresrented already, i.e. overstated by 60%) will continue to sell at historic highs, and in fact that the prices will continue to rise from now.
so what needs to happen
they need to get permission to mine this product which probably will not happen anytime soon because of the management's foolish and heavy handed dealings with the Greenland Government.
if they were to get approval, they would have to due a real feasabilty study and mine plan which they don't have to money to do.
if they got the money for that and got it approved and got their exploitation license (for which they would have to show financile capability which they can't do), they would then have to raise more than 1 billion dollars to build the mine (their numbers not mine) before they earn dollar one.
the last problem, as i alluded to before, is that they will not be able to compete with Tanbreez down the road.
i have attached a chart that shows the relative size of the two deposits, see pdf file below
As you can see from the chart, the tanbreez deposit is significantly larger than kvanefjeld and unlike kvanefjeld, it has no problems with radioactivity, yes i said no, as in none. tanbreez is also significantly ahead of kvanefjeld in their pfs and in the refining solution and so, again will likely get to the market ahead of ggg.
and they can't seem to keep their stock trading. great company huh. beware of the bogus rare earth stories coming.
Well written and well thought, looking for PDF's?
sorry i am having trouble getting it to attach. I'm working on it.
Mods is it possible to assist ray1 directly with his issue (attaching a PDF), that would be greatly appreciated.
please disregard the incorrect statement at the bottom of the chart that says westrip/rimbal have the right first purchase rights for REE's from kvanejfeld. the joint venture between ggg and westrip has ended and their are significant questions as to whether the first right to purchase the ggg rare earths survives the end of the joint venture.
i don't want to mis-lead anyone so all should assume, to be safe, that it does not. the lawyers will figure it out eventually.
again disregard the asterick statement at the bottom of the chart which speaks regarding first purchase rights of kvanejfeld REE by Westrip/Rimbal
it may be incorrect
I am trying to find information about Tanbreez to compare the company with Greenland Minerals to get an idea of REE competition in Greenland. I have found the following company website:
It appears to be run by a group of rocklickers from Transnistria? Is this the company leading the project? Also concerned about the negative press appearing on their homepage.
You must be one of those uninformed, adolescent children from the HC forum. It amazes me how so many posters can follow the ramblings of an adolescent child, like a flock of sheep blindly following their shepherd over a cliff.
Did you know that Tanbreez was awarded a exploitation license recently? Something GGG will never achieve because the company does not have a viable business plan. The company relies on the fact that there are uninformed and gullible people who will happily believe their fantasy revenue forecasts and cost of production. That’s what 95% of the stock market relies on, uninformed, gullible investors. GGG has plenty.
Of course the good thing about people like you is that it creates great trading opportunities. And GGG is a traders delight with so many gullible people happy to buy shares at ridiculous prices. You will be the one in 6 months time telling everyone about the great opportunity GGG SP collapse is to top up some more.
How about you grow up and stop acting like an adolescent child on the internet.
Hows it feel to lose your HC account under the same name?
All that work. So many years. All gone. tricked and outsmarted as you tried to bash GGG boards. What a way to go. Poor goofy. Now he hides behind his skirt of an account Alexandria. Needs to imitate a woman to try continue his work. You look great in a dress girl haha
Ray1. Greg Barnes.
How's those 27 suspended accounts going trying to get revenge on GGG on HC for failing your swindle to rip off shareholders. Either in Westrip (who caught you trying to siphon GGG shares out of the fund into your private account)
Or with dodgy partners like Mickey Nonames who tried to retake the company a guy called in to help as he does this sort of thing in his legally peppered past.
Greg tried to sell out a portion of the company to shareholders to raise capital (because of his atrocious criminal past trying to rip people off in Chameleon Mining). Then form a take over panel with Mickey Nonames and Mihran Shemessian to take the control back off shareholders and screw them over.
But what happened?
Shareholders got whiff of his plan and put an end to it. Greg lost his prize and joy and he' bitterly being trying to get it back. Trying to rally investors against management to oust them so he can get back in to steer the ship and rip the holders off yet again.
All he now has is a deposit he claims is the biggest REE mine in the world but unfortunately you cant even extract them. So he built a mine that mines other constituents and has a REE byproduct that even with a mining license all ready to go. No one wants to buy the stuff.
How does it feel to fall on your own sword Greg? How is the sweet taste of karma?
You should start a clown show because you know everyone at those AGMS are laughing at you. The owner of the "biggest REE resource in the worlld"
More like the guy who lost the biggest REE resource in the world and now trying to put a dress on a pig and calling it his wife. Stuck out in the snow inthe Greenlandic cold with a block of land that everyone knows is a barren waste of space no one wants to invest in with a criminal (or would even buy it because its a pig with nothing to offer)
You two should get over it and admit you lost. You were both outplayed in style and now all you can do is roll in the bitterness of your own failed stupidity and embarrassment. Continuing in being out smarted every day by those who know better than you. Savior some dignity and just stay in the uneconomical dirt. As otherwise everyone just continues to laugh at the desperation trying to flounder out of so much embarrassment.