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Innovation Metals Corp. (IMC) is a private, Toronto-based company, founded in early 2011 to provide a range of independent products and services to the rare-earths sector that have not been previously available.
The company’s first initiative is the provision of independent, centralized separation facilities for the full suite of rare-earth elements (REEs). IMC will form a Consortium consisting of producers, end-use consumers, traders and government stockpile programs, to allow all parties to take advantage of low-cost tolling programs, and the security of supply that results from guaranteed production capacities.
IMC is also working on two new trading platforms; the first is a rare-earths exchange for spot transactions, with fulfillment via physical delivery. The second is a proprietary auction platform for commodities, which will be used to provide transparent, guaranteed contract prices for the rare-earth products that will be processed via the centralized separation facilities. The bid / offer data from each auction will be shared with all participants, leading to true price discovery for these materials.
IMC’s revenues will come from two primary sources – modest tolling fees for the separation of rare-earth concentrates, and marketing fees for materials sold through the Exchange and Auction platforms. In addition, IMC will fund extensive R & D programs using the strong operating cash flows of the separation facilities. Due to the stable nature of such cash flows, it is expected that a significant majority of the separation capacity will be funded through consumer-financed debt facilities, and equity holders can potentially benefit from a high return on equity.
While there is an element of valuable intellectual property behind the use of solvent extraction to separate REEs, it is by no means a barrier to entry for others. IMC intends to build its business by winning customers and clients one by one, while ensuring that the company provides total transparency in its value-added services.
There is a significant first-to-market advantage and others may try to encourage producers to build their own facilities. However, IMC’s willingness to simply toll these services for low rates, is a compelling reason for junior-mining companies to engage such services, where they do not need to market the product, while retaining significant economics less a fee that is, in most cases lower, than the cost of capital.
IMC’s management team comprises industry veterans and REE experts, with years of experience and extensive networks. IMC is committed to working with producers, end-use consumers and traders, to create a more efficient industry, using practical solutions.
As stated above, IMC is currently a private company, and has recently concluded a small Seed Round for investors. It is ultimately the company’s intent to go public; a time frame for doing so will be established once the various development programs have been significantly advanced, to ensure the best use of capital. While IMC’s strategy eventually calls for significant capital expenditures, as the company works towards executing its strategy it will continue to initiate and to build relationships with capital providers and is open to discussion on strategic partnerships.
To further understand the company’s capital needs going forward, interested parties are invited to get in touch with the company via the contact form.