From the world of technical expertise:
Scandium International Mining (TSX:SCY) has announced results of a definitive feasibility study for its Nyngan scandium project in New South Wales, Australia. The project is 80 percent owned by Scandium International.
As quoted in the press release, highlights included:
Capital cost estimate for the Project is US$87.1 million,
Operating cost estimate for the Project is US$557/kg scandium oxide,
Oxide product volume averages 37,690 kg per year, over 20 years,
Capex adds another $100, $150 per kg to that opex.
Current market price is good. A few months back at least you’d be getting $3,000 a kg, something like that. I’ve seen very much lower prices just this past couple of weeks.
However, here’s the killer. Global market is currently no more than 15,000 kg a year. One single producer comes in with 2x global consumption and the price is going to do what? 15 years ago, when there was stock around but no ongoing production prices were $300 per kg.
Just cannot see it working myself.