Apparantly these comments offered by nro are considered general fundamentals and logic. I consider it to be nothing more than subjective opinions with zero real world credibility and a total contradiction. Basically this poster is waiting and hoping for REO prices to increase for a large return on their investment which may take up to 6,12,24 months but really has no idea how long. But then will argue that general RE market fundamentals are of little consequence to the viability or profitability of a RE company. Sure way to lose your hard earned using that type of “logic” IMO. More than likely already well underwater and looking for any excuses to justify a poor investment.
“Lack of analytics to think grades alone can judge any REE investment over its profitability.Always need to go beyond simple market fundementals to evaluate to any worthy capacity any individual company within it.”
“Grade doesnt determine viability or profitabilty.”“You cant judge the worthiness/profitability of an individual company based on general market fundementals.”
“Clearly NTU is not a producer. But how can you not value its future capability so to then value its worth as is now?”
“...market price for end product is not the total end all point to each REE company’s comparable value. Dropping end product prices ill effect all producer profit lines. But it doesn’t proportionately on an individualized basis.”“Yes volume to be processed is a fator however it is a very marginal one when compared to others. Assuming its anything like what you have just stated as equal as how you seemingly go around valuing REE lodes based on their concentration is dangerously open to correction. When you get too focussed on one company you tend to expose yourself to such mistakes when dealing with others.”
“I feel we may find in time REEs will increase in value. Profit margins off lowered profits closer to the bone quickly jump in %return and correlation in SP follows far beyond returns made by operating producers with higher degrees of profit. Also the icing is the lode itself as when feasible and accessible it then becomes valued and a higher then Sp correlates further whence its factored in.”
“I watch and would buy and hold marginal NTU holdings for this type of play. Its down trodden and high risk. But should it turn the tables it would offer stellar returns.”
"Grade does determine viability and profitability"Incorrect. There are many other factors that contribute to these variables to a greater scale. I think any reader even new to the REE industry or mining sector for that matter could list quite a few costings that fluctuate between processing different loads at differing locations and depths or just in operating a business and its costings. All regardless of the resources grade.
"You can judge the worthiness/profitability of an individual company based on general market fundamentals"Incorrect. There are also many other factors within the dynamic of a company’s conduct and operation that far outweigh in monetary terms compared to any variance in the slight shifts in end product pricings seen in recent times. To make it simpler for you to comprehend as you appear to be having trouble answering this with any factual thought.If Jim sells top quality milk But it costs him more to produce per liter. Does that mean that John. Who’s sells a lessor quality milk produced at lessor price will go out of business first if the price of all milk drops the same? All just because Jims milk is a "better quality"Answer= No. Jims price may fall under his production cost putting him out of business while John operating at a lower cost base can still survive.So no. Market price fluctuations and fundamentals do not over ride individual company’s fundamentals.
NTU Price at posting:
6.8¢ Sentiment: Sell Disclosure: Not Held
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