Myriad new and expanded uses await increased hafnium supply, and Alkane is uniquely positioned to become the first company to offer primary mine supply of roughly 200 tpa at the cost of little more than another circuit in its processing plant. Hafnium oxide trades for roughly half the price of the metal, or $600/kilogram.
One would expect a near quadrupling of supply of any specialty metal would result in lower prices, but reduced hafnium prices would also spur new uses and bolster demand.
Over time, hafnium prices would find equilibrium, in all likelihood at lower prices, but even assuming prices are halved, 200 tpa would still represent $60M per year in additional revenues for Alkane for 80 years: you do the math.
The addition of hafnium to Alkane's product suite, and its importance to the aerospace industry, may well be the catalyst that gets the DZP funding commitments across the line. And once Alkane secures funding, the rerating of the stock will be substantial and will take the market by surprise—and Alkane will become another overnight success 15 years in the making.
It has always been thus in the mining sector.
TGR: Richard, thank you for your insights.