Happy New Year to All !
1997 was not good for us, CVR shareholders.
I'm also tired to see my money melting..
I hope that this picture will be changed in 1998:
Hopefully the Mexican JV will be finalized and the
Gold Mine will start production which should cost about
$105/OZ with a nice margin to the JV. The gold and
silver is about to start upward move.(although Money World is
not a reputable publication, but I like the article about global
gold situation) and eventually, the Scandium JV will be announced..
One thing I know for sure: the inquiry for Scandium supply was real,
and that is why CVR grabbed new property...
I also did some inquiries and found that there is not too much of Scandium for sale
from the former Soviet Republics and the offering price is not that
favorable: $12,000/KG = $340/oz???
So if CVR can offer a steady supply of 25,000lb/yr for $270/oz
we could be in a great shape.
Considering that Nickel will pay (or partially pay) for Scandium extraction the
overall production cost will be very low and can give JV competitive
edge and nice profits.
I think the key here is the amount of Scandium they are looking for to make
this operation feasible and profitable. Aluminum Company just making an alloy
which will be used by various industrial enterprises, and without a firm contract
for a steady supply of Scandium, the AC will not be able to make any deals or moves..
And this is not one time deal... The technological changes will be in effect for many
years ahead of us and a lot of Scandium will be required...
So, CVR move to acquire additional property was very good, and if they can do it
again it's even better for business: with an ample supply of this mineral CVR becomes
an attractive business partner...
25,000 LB is = 400,000 ounces and this is for 11 years of supply based on CVR's
4.5mm oz of Scandium
I do not know whether 11 years is enough for the industry and this is the key question...
If this is enough, we will see some deals soon.
If the JV will clean only $100/oz - it's a lot of money
we are talking about(do your math).
So, let's hope for some exciting news ahead of us and a
profitable and healthy New Year to All!!!
Regards,
Sam (still a believer in CVR)
(for inquiries my e-mail: Skuretsky@aol.com) |
