$TMRC : Texas Mineral Resources — Updated Economic Analysis

Flagship ProjectRound Top
Mineral Resources (M&I)307,260,007 kg REOs
Shares Outstanding46,686,252
Market Cap$14,005,876
Average Annual Production10,754,100 kg
LoM20 Years
Payable REOs215,082,005 kg
True All-in Cost (TAIC) $21.43/kg.
Gross Revenue$7,764,424,000
Texas State Royalty($487,476,000)
Gross Income$7,276,947,000
Total Operating Costs($2,213,683,000)
Operating Profit$5,063,264,000
Total Capital Costs($845,000,000)
Income Taxes($1,063,285,440)
Net Income$3,154,978,560
Net Profit Margin41%
Absolute Cost Structure (ACS)39%
True Value (TMRC, 30%)$20.27/sh.
Cash Flow Multiple5x
Annual Cash Flow (TMRC, 30%)$47,324,678
Future Market Cap$236,623,392
Market Cap Growth1,589%
Target$5.07/sh.

Notes: All Values in U.S. Dollars

Update, 9 September 2019

Gustavson’s August 2019 revisions to the Round Top PEA had a negligible impact on Fahy Capital Management’s independent analysis. In fact, the updated PEA is more in line with our own assumptions. Consequently, we don’t feel compelled to revise our expectations.

$TMRC : Round Top Designated High Priority Infrastructure Project by the White House Council on Environmental Quality

Once approved by the Federal Permitting Improvement Steering Council (FPISC), Texas Mineral Resources’ Round Top Project will be fast-tracked into construction. The Round Top Project has been classified as “high priority to the nation” and will be granted preference in the licensing process under Executive Order 13766.

The heap-leachable Round Top Project, which has a low CapEx and OpEx, contains a high percentage of REOs strategically critical to the U.S. defense, clean energy, aerospace, supercomputing, and transportation sectors.

Flagship ProjectRound Top
Mineral Resources (M&I)307,260,007 kg REOs
Shares Outstanding46,686,252
Market Cap$14,005,876
Average Annual Production10,754,100 kg
LoM20 Years
Payable REOs215,082,005 kg
True All-in Cost (TAIC) $21.43/kg.
Gross Revenue$7,764,424,000
Texas State Royalty($487,476,000)
Gross Income$7,276,947,000
Total Operating Costs($2,213,683,000)
Operating Profit$5,063,264,000
Total Capital Costs($845,000,000)
Income Taxes($1,063,285,440)
Net Income$3,154,978,560
Net Profit Margin41%
True Value (TMRC, 30%)$20.27/sh.
Cash Flow Multiple5x
Annual Cash Flow (TMRC, 30%)$47,324,678
Future Market Cap$236,623,392
Market Cap Growth1,589%
Target$5.07/sh.

Press Release: TEXAS MINERAL RESOURCES AND JV PARTNER USA RARE EARTH ADVANCE ROUND TOP RARE EARTH PROJECT

American Mineral Security Act Introduced

Our nation’s mineral security is a significant, urgent, and often ignored challenge. Our reliance on China and other nations for critical minerals costs us jobs, weakens our economic competitiveness, and leaves us at a geopolitical disadvantage. I … appreciate the administration’s actions to address this issue, but Congress needs to complement them with legislation. Our bill takes steps that are long overdue to reverse our damaging foreign dependence and position ourselves to compete in growth industries like electric vehicles and energy storage. –
Lisa Murkowski

American Mineral Security Act [LINK]