EDITOR: | December 6th, 2013 | 10 Comments

A 1-3 year Lead Horse in the rare earth production race?

| December 06, 2013 | 10 Comments
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AMR-MineralsDecember 6, 2103 — Tracy Weslosky, Publisher and Editor-in-Chief of InvestorIntel, interviews Tumerk Komurcu, of AMR Mineral Metal Inc., who describes his company’s current endeavour as “a near-term production, low CAPEX, rare earth element and minor metals project.”  She mentions that AMR Minerals was brought to her attention by Jack Lifton, an Editor on the InvestorIntel site, and a director on AMR Mineral’s Board.

AMR Mineral Metal owns 100% of the mining rights to Heavy Mineral Sands-like REE & Minor Metals deposits in southern Turkey. As a member of the EU Customs Union, and having a modern mining legal system, not to mention offering mining incentives to encourage in-country investment, Turkey looks to be a good geo-political risk-to-reward bet for the kind of cutting-edge production effort envisioned by AMR.

If plans to get its project into production work out anywhere near schedule, AMR could enjoy a lap-around lead on most of its competitors.

Tracy initiated the session, asking Tumerk to discuss the “number one question” – regarding AMR’s “low CAPEX” aspect of his company’s project equation. He responded that, for total project estimates, “CAPEX is expected to come in at around $190m. For our Phase I Project – which is scalable – (it is anticipated to be) at $65m, and we are looking to get into full production by the end of 2015.”

Within the next 6–8 months AMR Mineral is expecting to have a demonstration plant set up in Turkey. Once funding is in place, they plan to complete the Phase I construction within 12 months.

Tracy noted that for this “sizeable resource”, infrastructure was in place and asked Tumerk for further details. He added that “Our project is located in the southern part of Turkey, very close to commercial seaports and commercial airports. We do have roads, water and electricity right into the deposit site.”

After noting AMR Mineral has “one of the fastest production timelines of anybody in the sector” as well as an impressive Management Team and Board of Directors, she asked Tumerk what the company needs to do in order to get to the next level.

“Now we are looking to close the financing within the next month, which will get us to set up a demonstration plant in Turkey, where we will be producing all of the individual products on a continuous basis – in small quantities – but on a continuous basis. We are looking to finalize our bankable feasibility study by 2014.”

Tracy observed that “in essence you are a multi-commodity play” with numerous critical or strategic minerals, along with zirconium (a heat and corrosion resistant metal with physical properties similar to those of titanium).  Tumerk stated that they would be able to produce zirconium at 99% recoveries. Management is working with a group out of India which has years of experience in the commercial production of zirconium.

“That’s why we call our project a ‘rare earth elements and minor metals project’.  Along with rare earths, they have titanium, zirconium and iron oxide…we can attribute zero value to cerium and lanthanum, and still have very robust project economy”, Tumkerk concluded.

An excellent presentation, found on AMR Mineral Metal site  here notes that China dominates the REO Industry with 95% of global production, more than 60% of which it consumes internally. An important corollary is that as demand for “technology enablers” grows, Japan, the EU and the U.S. are seeking sources of reliable supplies.

Especially informative is the p9 chart (of a 22 pp presentation) listing AMR’s advantages compared to 5 of its peers. Noteworthy is the company’s expected IRR, its target production year (at 1-3 years ahead of competitors), and its calculations of cost-revenue/yr. for its Canakli Project.  Add to this the favorable deposit and mineral formation (e.g. “naturally well-liberated minerals, with no need for crushing and grinding”) and a compelling story begins to emerge.

Canakli has a 2,000 ha operating license, permitting and licensing has been completed, and environmental permits are in place. AMR also has completed a resistivity survey and geological mapping on another property, the Cobanisa Deposit. This is in addition to having performed surface inspection and limited sampling on 5 other deposits. On the Shareholder front, AMR Mineral Metal sits at 44.9m shares, Fully Diluted.

When you’re potentially 1-3 years ahead in the race to production, your competitors could find themselves eating a lot of dust. And AMR Mineral Metal, Inc. seems poised to accomplish just that.

Disclaimer: AMR Mineral Metal is a client of InvestorIntel.

 


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Comments

  • Bill Keenes

    just what the world needs, another light rare earth producer

    December 7, 2013 - 3:55 AM

    • Tumerk Komurcu

      Dear Bill,

      Please correct me if I am wrong but to my knowledge there currently is no “profitable” producer of Rare Earths outside of China, even for the Lights.

      As you may see in Corp. Presentation pg 4, AMR is one of the few companies that can attribute $0 value to Ce & La still having very positive project economics.

      Unlike many other developing projects, AMR has the technology and capability to individually recover Ce, La, along with Neodymium & Praseodymium.

      In the PEA, Heavy REOs are considered to be separated through the use of a Third Party Facility. While we are pursuing this opportunity, we will also look to separate HREOs in-house as well.

      In accordance with the PEA Report, Raw 1 shows the amounts to be recovered at Phase I capacity while Raw 2 shows the amounts to be recovered at Full Capacity. (Corp.Presentation pg 7)

      Nd/Pr Eu Tb Dy Y Sc Sm Gd Er Yb
      293t 3.8t 1.4t 9.3t 40t 2t 28.4t 20t 4.4t 4.7t
      1,123t 14.3t 5.5t 39.7t 167t 9.5t 108t 88t 19.4t 20.7t

      Tumerk

      December 7, 2013 - 10:53 AM

      • Bill Keenes

        Looks to me like pinocchio has been hard at work with this one

        Doesn’t anyone look behind what’s driving the numbers anymore – economics 101

        My reading of the May 2016 NI 43-101 Report (remember resident expert Jack Lifton said recently we can rely on the NI 43-101 Report) … clearly reveals on page 8 – the BUDGET FOR PROJECT ADVANCEMENT – Total Phase One costs $800 M – Phase I focuses on advancing the base case for mining of Çanakli 1, by increasing the confidence level of the resource estimate, continued metallurgical testwork, and completion of studies.

        Now page 9 of the NI 43-101 Report states :- Pre-production capital cost of $65 million, which includes $13 million in contingency.

        It’s hardly a low cost project if to achieve pre production capital costs of $65M, you have to first spend $800M

        Also if they are making their projections on the forecast prices on page 29 of the NI 43-101 Report is it any wonder they are projecting project viability – bet you both Lynas and Molycorp would be profitable if they could achieve such forecast prices

        Perhaps the company executive or the highly regarded Jack Lifton himself might like to comment

        In the meantime I encourage everyone to review the NI 43-101 Report and then form your own assessment

        December 7, 2013 - 7:15 PM

        • Bill Keenes

          that should read: May 16, 2013 NI 43-101 Report

          December 7, 2013 - 7:16 PM

          • Bill Keenes

            I withdraw the above comments

            Just re-read the NI 43-101 Report – $800,000 (not $800M) is the Phase 1 costs – makes all the difference

            A very impressive project indeed

            Now it’s got my full attention

            December 8, 2013 - 2:25 AM

          • Tim Ainsworth

            Bill, an interesting comparison is the Crossland JV with a remarkably similar proposition:
            http://www.crosslanduranium.com.au/uploads/resources/CUX_POWERPOINT_SCOPING_STUDY_COMPLETION_15_APR_13_FINAL.pdf
            CapEx $156M aiming at 3600tpa in 2016 as a mixed carbonate at $6.54 CoP.
            While TREO% is half AMR a quick look at the distribution at TMR shows higher values for Tb, Dy & Y, similar Nd/Pr & lower Ce/La. The HRE is contained in Xenotime and they’ve just commenced a drilling campaign to identify higher value starter pits which would obviously further improve project economics.
            A couple of interesting ones to watch.

            December 8, 2013 - 8:46 AM

  • Aat Oskam

    http://www.marketwired.com/press-release/sagittarius-announces-details-of-qualifying-transaction-with-amr-mineral-metal-inc-tsx-venture-scx.h-1808226.htm

    By reading this, am I wrong that there are no free float assets? Are they fully owned by Sagittarius Capital Corporation. Please correct me if this in not the case!

    December 8, 2013 - 10:02 AM

    • Tumerk Komurcu

      Aat, AMR is currently a private company. A Letter of Intent was signed with SCC for a potential RTO.

      December 10, 2013 - 5:36 AM

  • Rare Earth & Critical Minerals Week-in-Review: the saga continues…have we finally hit the bottom? | InvestorIntel

    […] miss InvestorIntel Publisher and Editor-in-Chief Tracy Weslosky’s video interview with Tumerk Komurcu of AMR Mineral Metal Inc. — a near-term production, low CAPEX, rare earth element and minor metals project. AMR Mineral […]

    December 9, 2013 - 2:04 PM

  • Alex

    Have you any news about this project ?

    April 8, 2015 - 7:31 PM

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