We had a question posed about what a fair valuation of ReElement would be for an anticipated IPO in 2026 (for sake of consideration, let’s say Q4 2026).

They’ve had a flurry of movements lately. They signed an off-take with Vulcan and then initiated a subsequent partnership / JV with them (backed by the 1+ billion financing and equity of the Department of War / OSC). They also signed an offtake with Posco and there are discussions of a JV with them as well. In addition, they signed on with Uzbekistan and TMK (Tungsten); signed a feedstock MOU with Pensana (who then received a large EXIM letter in exchange for supplying their feedstock to the USA); signed on with ERI for recycling as well.

All in all, it strikes me that they’ve thoroughly de-risked their feedstock sources and their downstream clients. Their technology is proven at pilot. The risk that remains is in execution and scaling. Can their technology really scale? If it can, it provides a viable alternative to solvent extraction - less capex, less environmental footprint, incredible versatility and the purity speaks for itself. If it’s successful, they can license this technology out and generate another significant revenue source down the road. But can they execute what they need to do to get there?

Their previous valuation was 150M and I’m hearing they just signed an agreement with a counterparty that valued them at 1.2Billion. So what do we think they will IPO at if they do so in about a years time?

Would love your thoughts. Selfishly, I’m hoping they keep the momentum going and IPO sooner rather than later. I have thoughts on the likely pricing for IPO, but I won’t prime the discussion. What does everyone think?

Side note: as we know, AREC has a 19% stake in ReElement. Their own market cap at the moment is around 260M. If we just base their value on ReElement, it would be… 230M. I wonder how much more value AREC brings? is it more or less than the 30M difference? 🤔 I have questions asked about AREC frequently. Something helpful I can say is that if I were considering an investment at the moment, I would be trying to answer this very question.