Hello Luker,

You’ve stated, “Calculations based on in situ value of the Titanium are rather pointless, as like everything else, it’s the size of the existing and projected market that really matters.” Obviously, “the size of the existing and projected market...really matters.” I don’t think anybody on this Message Hub is saying otherwise. Titanium is no different than any other commodity in regard to its price depending on how big the demand is. Compared to Iron, for example, the demand is less, so is the supply. So what. The market still rules.

It is self-evident that Titanium has an in situ value, exactly the same way that Gold or Copper has. Just because the market is thinner does not mean selling Titanium in situ is “rather pointless” or having a discussion about it is “rather pointless.” On the contrary, the in situ value of Fancamp’s Titanium (and its other resources) is the main point. There’s no point more important or more essential to know.

Trust me; if someone were to auction off a property with a known desirable quantity of TiO2 (located in a friendly jurisdiction), there would be a number of very serious offers. So summarizing (and thinking about) the price per kilogram is, from top to bottom, a valid and natural thing to do. Even beyond that, to have any understanding at all about the market, getting the going prices in that market, absolutely, is imperative. So, without question, we should not give up trying to uncover the realities. Learning the in situ values may be difficult; but it is not an impossibility. Getting as much in situ information as we can is the first, the most basic, and the most crucial requirement.

With Titanium, as with any other commodity, if the supply at times outstrips the demand, it doesn’t make it worthless. The price may go down. Then, competitors may go out of business, sending the price back up. If the price is too low, new consumers may jump in after switching from a different metal. Believe me; the Titanium in the ground will always have an excellent (or less than excellent) in situ value to many people.

Naturally, refined pure Gold costs far more after mining and purifying it from its original grams per tonne in situ value. However, just as today’s $1666 price may only fetch a lowly in situ $100 an ounce from a well-positioned supplier, that doesn’t automatically shut down the market (or make it “rather pointless” to try to figure out the range of in situ values in that market). So, no more than I would for Gold, I will not take “no” (or “rather pointless”) for an answer for Titanium.

There’s an important lesson to be learned just by the fact (in the first place) you’ve talked about what Fancamp owns (in the ground) in terms of your Rio Tinto observations. It is noteworthy in of itself that you’ve brought up (in your message) Rio Tinto’s Titanium resources as being on a level that can be compared with what Fancamp owns. Your discussion of the scale of Rio Tinto’s Titanium operations as being comparable to the scale of Magpie’s (estimated 1.1 billion ton) resources underlines the fact that we have every right to be talking in terms of a world class market valuation being given to world class asset.