Mount Ridley Mines Limited (ASX:MRD) - The Mount Ridley REE Project - The Next Stage.
Episode 187 of Coffee with Samso is with Guy Le Page, Non-Executive Director of Mount Ridley Mines Limited (ASX: MRD). Mount Ridley is now at the business end of the Rare Earth journey.
Mount Ridley Mines is now focusing on the flow chart of the REE business. This is the money end, can you make the processing part cash flow positive?
When I had my first Coffee with Samso with Guy Le Page, in July 2022 (Mount Ridley Mines Limited (ASX:MRD) - A Rare Earth Story.), it became evident that the company had a strong focus on optimising its flow chart. The company was confident in its ability to achieve the desired tonnage and grade, but its primary emphasis was on the final stage.
In my view, one of the major benefits for companies like Mount Ridley is their project's location in the Esperance region. Numerous discussions have highlighted the region as the ideal site for the government to establish a Rare Earth Hub.
Check out the conversation in this Coffee with Samso and, as I always encourage, DYOR.
Chapters
00:00 Start
00:20 Introduction
01:10 Updates on the Mia Project
02:45 Beneficiation Results
03:55 Leach Test Results
04:59 Is Mia the main focus of Mount Ridley?
06:01 Mia prospect air-core drilling
06:37 Discussion about the soft REE market
09:05 Q&A from the public
09:19 Is MRD still going to list on the Frankfurt Exchange?
09:46 What is MRD’s strategic roadmap beyond 2023?
10:59 How is MRD taking a position for success amongst Esperance peers?
11:59 Is using HCL costly? And what about government grants?
13:03 Has MRD determined the controls in the clay-hosted REE project?
15:24 Prediction of the path of the REE market as we move forward
17:01 What makes MRD stand out?
18:20 Discussion about the REE market
20:17 Conclusion
Samso's Conclusion
When investing in the Clay Rare Earth sector, it is crucial to consider the economic viability of the processing flow sheet, and, while the industry has yet to determine its profitability, this does not mean it won't become a viable option. However, it is important to acknowledge that the industry is still in its early stages, and there will be a steep learning curve filled with uncertainty.
The industry has successfully identified the process of leaching out the Rare Earth Elements (REE), but the economic outcome in terms of profitability remains uncertain. The REE sector, including both hard rock and "Clay/ionic/alluvial" types, has gained attention in investment circles due to recent geopolitical developments.
China's dominance in this sector is widely recognised and understood. The previous discussion on REE in the investment community was short-lived in 2010, as the market experienced rapid fluctuations. However, the current rise of the REE sector has shown more resilience, having been present for a couple of years, largely due to the new "cold war" with China.
Balancing the REE sector will require time, and investors in this sector must cultivate patience, akin to the patience required for fishing. It is frustrating to continually emphasize that mining projects are measured in terms of years to decades, while investors, particularly new ones, expect quick results within weeks or months.
Unfortunately, such quick results are unlikely to occur. Regarding Mount Ridley, they have a solid strategy, and recent results indicate a viable business. However, the investment community needs to learn to be patient and learn to "PARK" their money.