Sunrise scandium deal lifts punter's spirits

Opinion: Scandium-for-rockets deal light on detail - sell

Opinion
Relativity Space wants a scandium-aluminium blend suitable for 3D printing for its rockets and Clean Teq Holdings has a supply from its Sunrise project.

Relativity Space wants a scandium-aluminium blend suitable for 3D printing for its rockets and Clean Teq Holdings has a supply from its Sunrise project.

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No-one ever went broke by taking a profit, writes The Punter.

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"Let your profits run" is usually good advice, though it makes sense to sell half when the price has doubled, thereby ensuring that you can't lose.

CleanTeq Holdings (ASX code CLQ) hasn't quite doubled in price since the Punter bought back into the company at the beginning of the month, but it is up 87 per cent.

The company's quarterly report, released on July 17, suggests its projects are travelling well.

It has been granted an exploration licence to look for base and precious metals in NSW and is close to securing a contract for water treatment at a Victorian gold mine.

Its flagship Sunrise project, one of the world's largest and cobalt-rich laterite deposits, is on track, although the capital cost of developing the mine is likely to be higher than earlier thought.

When operational, it will produce significant quantities of nickel sulphate and cobalt sulphate for vehicle batteries.

Yet the big boost was news it has signed a 10-year agreement to supply scandium from Sunrise to Relativity Space, a private US company building rockets.

The world produces very little scandium, but it sells for about $US44 a gram because it makes lightweight aluminium stronger and more corrosion-resistant.

CleanTeQ believes its ion-exchange technology, originally developed for water purification, will give it a technical advantage in refining scandium from Sunrise.

The Punter rummaged in his adage box, picked out one that says "no one ever went broke by taking a profit", and promptly sold his CLQ.

After all, Sunrise isn't even operational yet and the scandium announcement gave no financial details.

He sold his Wide Open Agriculture (WOA) on June 18 at 51c, a thumping profit.

The company seems to be expanding nicely, but the shares have slid back. He has placed an order for 3000 WOA at 38c, just below the current market price.

  • The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.

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