Rec from Metals and Mining substack
Do your own DD, but here are the highlights:
Only domestic (USA) supplier of Fluorspar, in Utah.
Upgraded operation into industrial-scale mining operation, a lot of risk deleveraged and it’s now isolated to operational risk.
On cusp of production.
Just signed a deal with Pentagon for $169 million, potential to increase to $250 million, guaranteed revenue and premium pricing. Paying a price per pound which guarantees 50% margins.
Market cap: 124 million.
Free call option on Gallium and germanium. FD, I am investing this morning.
Mining companies valued by free cash flow: If 124 million, 50% margin, maybe 30 million, assign 10 multiple…300 million Market Cap, double from here. If 250 million in revs, higher than that. I’ve placed my bet.
