SteauaOilers - Let's just say that I have more than money riding on GWMG. My wife is quite nervous and has made it clear in no uncertain terms that it better work out. I've spruiked GWMG to my father and all he says is "g**d****ed Candian junior mining stocks." This sector is not for the faint of heart, but really, GWMG is quite the anomaly. There are no other companies really like it which is why they need better PR.
We need the PEA, a new CEO, move to the TSX (and US listing), and get the reverse split done and over with. A large part of the new CEO's job will be selling the company to analysts and the investment community. Not ORT type PR where every time they take a dump they issue a PR, but clear and frequent articulation of the entire business model. I company that I follow but do not own now (souther pacific resources, STP) has webcams over their main operation so you can see progress in real time (daily pictures). STP also puts up frequent videos. Another company, New Zealand Energy updates their corporate presentation every single month. These small things matter and are helpful for companies that are scaling up and building. You can visually see the progress happening.
Going back to the big picture, it is clear that we have sufficient resource at SKK to justify a long-term mine. The upside may be substantial and it may be a very long mine. Actual mining is very small scale given the ore grade. Mining will be relatively cheap. Processing monazite is well-known. Turning that monazite into chlorides is not technically difficult or innovative. This is all well-known off the shelf processing. Separation, likewise, is standard and well-known technology. We are not doing anything novel. The small scale nature of GWMG's operation may keep this capital cost down substantially. We will see very soon. LCM has been spending close to a year fine-tuning the strip cast furnace so the time to get the next furnaces up to spec will be much faster. It all comes down to execution, but the execution risk here is really not that large. We are not doing anything novel or at a large scale. Again, I fail to see why the risk-reward ratio is not so heavily weighted towards GWMG that this is a no-brainer investment.
The only real risk that exists is that Nd magnet alloy pricing drops dramatically for some reason. New magnet technology gets adopted very quickly, or Nd magnets are replaced by something else. There is no evidence of this so I count this as a very low risk. Nd supply-demand seems in balance and will be in balance by all forecasts, so that is quite good. Demand may even pick up substantially with secure supplies in place.
I have to be honest that I am a tiny bit nervous, but I am comfortable.