Since my first interview with Ucore CEO Jim McKenzie here, the company has released some exciting news. The news has helped give some more specifics to the huge potential Ucore faces in their goal of becoming a "licensing machine" for Molecular Recognition Technology (MRT) from IBC Advanced Technologies. Read on for a couple specific examples of general issues that I believe are important to Ucore.

In November, Ucore announced that they would develop a production facility for Platinum Group Metals (PGM) that uses MRT in the USA. In our interview, Mr. McKenzie told me that electric vehicles are a key target market for Ucore. Since then, I learned that platinum is mainly associated with diesel engines, whereas palladium is associated with electric vehicles. After putting two and two together, I will be watching to see if Ucore can "tilt" their production towards palladium over platinum.

My sense is that it is technically feasible for Ucore to focus production on palladium rather than platinum because MRT is highly selective. Will Ucore be able to find input material that contains enough palladium to move the dial as a producer? I don't know the markets for recycled PGM material well enough to answer that question, but I suspect that Ucore will be able to make it work. I look forward to discussing it with Mr. McKenzie.

The specific issue of "platinum or palladium" extends into the general issue: "how will Ucore choose which metals to produce next?" The company has global rights to use MRT for recycling and tailings applications with any metal, which offers a very broad set of possible ways forward.

One way Ucore can pick which material to go after next is top-down: identify macro conditions that suggest some materials are more important than others (Pd over Pt) and then find ways to participate in that market. Another approach is bottom-up: start with counter-parties who have particular needs and help them achieve their goals. My sense is that Ucore will come at this from both sides, but it fascinates me that Ucore faces these issues at all -- these are not the typical issues that a junior mining company has to consider!

In some sense, Ucore has become like a software company with MRT, whereas the typical junior mining company is focused on the hardware of their mining assets.

A recent article from Chris Ecclestone at Investor Intel notes that Ucore may (will?) use recycled materials as the feedstock for production of REE and PGM at the company's "Strategic Metals Complex". I expected the PGM feed would be sourced from recycled catalytic converters, but the suggestion that Ucore could use old REE magnets was news to me. It certainly makes sense since these magnets are apparently under-recycled in the USA and Ucore's Bokan project is not in production, but it led me to think of another specific example of a general point.

My understanding is that recycling PGM from catalytic converters is a fairly well-developed market in the USA, whereas recycling REE magnet is much less developed. As such, participating in both these markets provides a great way for Ucore to prove that it can effectively compete against established players and create new markets.

The specific tradeoff here is "recycling catalytic converters versus REE magnets", but the general one is "taking market share from incumbents versus developing new markets." I don't think it's an either-or choice, but I do believe this is will be a key strategic issue for Ucore for years to come.

Mr. McKenzie and I even discussed this tradeoff in our interview, when he said "The direction we're opted for is to go after industries that are creating new players that can compete against the old guard." I will be watching for developments on that front and wish Ucore the best of luck in addressing these complex planning issues.