The rhenium "fundamentals" are more fun and mental than anything else.
World market is, per year, 50t or 1.66 Moz. If they have a deposit of 750m x 500m x 50m, they have about 35mt, at close to an ounce a tonne. If they dig even 1Mt of the stuff per annum, that's 1MOz of rhenium they have to flog to someone. They are telling you, by implication, that they can sel it for $300/Oz and they are going to dump 66% of the world's rhenium market out in any given year?
Hello. If someone came out today and aid they could dump 10Mt of copper onto the copper market within 3 to 5 years from a single deposit, would you buy into copper at a forward price of $1.80/lb or something closer to $0.60/lb?
Face the facts people, like Tas and Macrae say: this isn't worth as much as the simplistic back of the envelopes suggest it could be. IVA has the ability to destroy the very market fundamentals they are intimating make Mt Dore/Merlin such a screaming success. Plus %90/Oz or $50/Oz into the equation and this becomes nothing more than a moly mine with credits (although, not a bad moly mine; 1Mtpa @ 1% = 10ktpa Mo @ $32,000/t = $320M revenue).
IVA Price at posting:
$1.04 Sentiment: None Disclosure: Not Held
