Like I said...  




Looking short term (Q1, Q2, etc.) is fine, but more importantly, the overall picture has to be considered.


Medium/long term is bright and stellar, so partial revenues for year 2013 is not a show stopper at all. For example, the significant growth (and associated P/E and PEG) can largely compensate for a more humble 2013 (partial revenue year during ramping up of production), knowing that 2014 will be a full production year (production over the complete year - revenue growth), plus an additional HPA Plants planned for 2014 & up, and HP-silica getting into the picture as well. And all the development there will be on the others fonts (SGA Plants, resource increase, BFS which can be expected to be significantly better than PEA - NG in the backyard, Red Mud, Fly Ash, etc.).


My previous post is what can be expected from the HPA Plant at design production.




Price is $40,000 to $60,000 per ton for 4N, more for 4N+. Within a few months, the production split should be at least 30% 4N, 60% 5N and 10% 6N, @ an average basket price of approx. $ 100,000 per ton. In AGM, it was mentioned the margins would be in the 85-90% range if I remember right.

When ramped up to design production, this HPA Plant will generate revenues of $ 175 M per year and net profit of approx. 100 M per year (.50$ EPS); with a P/E of 20 = approx. $10.00 PPS. With still a PEG then that will be around 0.4 (still undervalued @ $10), considering the growth will be at least 50% (e.g. new plant in 2014 with payback of less than 6 months, HP-silica).

This is neglecting when HP-silica revenues also start getting in, which can up to double the total revenues. This is major growth potential.

This is also neglecting all other revenues from hematite, REE/RM 3rd party processing, etc.

So don't worry and be patient, this is where we are heading and beyond (SGA Plants, Red Mud, Fly Ash, copper and nickel, TiO2, and why not precious metals such as platinum...).

We already have a double digit stock in our hands. Shorts are about to learn it the hard way... They cannot prevent this level to be reached, they can only delay it somewhat, and after approx. 4 months of consolidation and 8-9 months of SP increasing despite having more than doubled their short positions, we can expect a strong upward correction.

Patience and accumulation.