Homerun Resources develops its project in record time

In a letter to shareholders, Brian Leeners, CEO of Homerun Resources (TSX.V: HMR, FSE: 5ZE, WKN: A3CYRW), reviewed the company’s recent successes and highlighted the key differences between Homerun and traditional project developers.

Homerun Resources is currently going through an extremely exciting development phase, as the path to production is being taken with great vigor and at a very fast pace. This is where the big difference between Homerun and an ordinary project developer becomes clear.

The latter usually have one or more projects, but do not yet have a resource. This must first be developed in the course of the exploration process. Depending on the size of the project and the financial resources, this process can easily take ten years.

Homerun Resources wants to realize the project together with partners

Homerun Resources, on the other hand, already has a resource that just needs to be developed. The plan presented for this is divided into three strategic phases. In the first phase, Homerun Resources is concentrating on increasing the in-situ value of its own facilities. This is a particularly rewarding task, as the quartz sand areas controlled by Homerun are world-class. They are consistent and have a high-quality natural grade.

This is a major advantage for shareholders, as it gives the company the opportunity to compress a five to ten-year process into a period of just twelve months. Parallel to the successful development of the project, strategic phases two (production logistics) and three (vertical integration) have also been driven forward in recent months.

In terms of production logistics, Homerun Resources will focus on the aspects of mining, processing, transportation, storage and shipping. The individual steps are to be implemented together with partners. Homerun Resources will therefore focus primarily on its partnership strategy in the first half of 2024.

Low capital requirement, low dilution

A particular advantage of this strategy is that it keeps Homerun’s capital requirements very low. Another advantage is that a lot of time can be saved here too, as the mine development process, which normally takes two to three years, can be shortened to just twelve months.

Homerun Resources has also tackled the vertical integration plan in the meantime. It envisages producing solar-grade quartz sand and transporting it from the mine to the solar glass plant. At the same time, land for a solar glass plant will be leased or purchased and a solar glass plant will be built. The project will be rounded off by acquiring an anchor customer who will process the quartz sand in relative proximity to the mine. This aspect will again represent a significant advantage, as the key competitive advantage in the solar glass industry is achieved by minimizing logistics costs.

The numerous cost advantages make Homerun stand out from the crowd of project developers

Homerun’s advantage at this point is that it has a silica resource that is of solar glass quality on site. The plan is to transport this silica to a solar glass plant to be built in the Salvador region of Bahia, Brazil.

The second way of vertical integration is the processing of silicon dioxide into batteries. This requires silicon quality quartz sand. Homerun’s resource also has this quality feature. This gives the company important competitive advantages over its competitors.

The company is therefore well on the way to achieving its goals and tapping into its first additional source of income within the next two years. For shareholders, this means that a process that normally takes a good ten years can be shortened to just two years.