Last week I co-led a $200M PIPE into $FVAC. My first big bet on climate change.
This will allow $FVAC to scale the largest rare earth metals mine outside of China - based in California.
Because it was $200M, I decided to write a 1-pager which you can find below...
This will allow $FVAC to scale the largest rare earth metals mine outside of China - based in California.
Because it was $200M, I decided to write a 1-pager which you can find below...
My belief is that rare earths are a highly assymetric way to bet on a multi-decade trend of electrification and climate change tech.
Demand can easily outstrip supply when you factor all the things that will run on electricity vs fossil fuels: EVs, turbines, drones etc
Demand can easily outstrip supply when you factor all the things that will run on electricity vs fossil fuels: EVs, turbines, drones etc
In many ways, rare earths are to electrification what Intel was to the PC Boom of the 1980s and 1990s: a common component in every solution.
Being long Intel in those days was equivalent to being long the PC revolution. In my mind, this is the same point in time.
Being long Intel in those days was equivalent to being long the PC revolution. In my mind, this is the same point in time.
Layer in the geo political value of having a critical supply of rare earths onshore in the US and there are a lot of tailwinds.
Price also gave me a REALLY good margin of safety: .88x invested capital, <6x 2023 EBITDA
Price also gave me a REALLY good margin of safety: .88x invested capital, <6x 2023 EBITDA
Let’s see how this plays out over the next few years, but I’m excited to be involved.
My memo is below. Questions welcome...
My memo is below. Questions welcome...
