Hi @anatol, you seem to have a very healthy knowledge base and data collection (thanks for sharing BTW) regarding REE companies so do you know if any of these 'other' companies are looking to 'only' sell concentrate......?
Or are they all looking into the downstream 'full processing' to oxide model.......?
I would appreciate it if anyone here could point me to a company currently modelling or who have already gone online regarding REE 'concentrate only production and sales'.
The concentrate production and sales model put forward by PM8 certainly 'differentiates' and 'simplifies' their approach in an advantageous manner when comparing to others imo, especially where capex/opex spend is concerned.
They have a quality resource (with massive potential upside if their mineral resource estimates are developed into M&I type JORC numbers).
"Inferred Mineral Resource estimate of: 240 million tonnes at 1.60% REO including 0.35% NdPr for 3,850,000 tonnes of REO including 840,000 tonnes of NdPr ".
Currently all resource estimates are classified as inferred but with infill drilling we should see an indicated category soon........"Initial infill drilling assays are expected to be received in April 2019", and diamond drilling for geotech and further met work optimization is slated to begin in March sometime also.
Anyway.............here's a small summary on some of current data on the project which might help a little with comparisons.
"The PFS will be based on the development of the high‐grade weathered zone mineralisation, which the company believes has potential to support over 10 years of mine life at an average mined grade of over 4% rare earth oxide and 0.85% NdPr".........
Hi grade weathered portion: 22.9 million tonnes at 4.16% REO including .86% NdPr containing 953,000 tonnes REO including 197,000 tonnes of NdPr.
"initial testwork program identified that the main rare earth host mineral was monazite which upgraded well (concentrate grades of up to 20% REO were achieved) via flotation techniques".
For the third party concentrate processors they would likely be able to produce the following (if so desired).
"Four distinct high purity products are assumed, selected to align to specific market end uses, as final outputs from the separation plant:
•A high purity NdPr oxide suitable for the permanent magnet market
•A cerium carbonate suitable for glass polishing and steel alloy markets
•A lanthanum carbonate tailored to the fluid cracking catalyst market
•A mixed mid and heavy (Sm to Lu and Y) rare earth carbonate that will be toll treated at a specialty separation plant
So the ore has additional 'value' not just that ascribed to the NdPr component...........whether this influences PM8's business models or not who knows (seems unlikely tbh with the focus on NdPr).
Decent recoveries for 'concentrate processors' are also likely............"Concentrate samples were subsequently tested through an acid baking and leaching process which is typically used on monazitic rare earth concentrates. REO extractions of 84% were achieved without optimisation of the process".
PM8 are aiming to process 2million tpa in order to produce approx 120,000 tons of high grade concentrate with estimated forward sales pricing of around $2000 per ton, and PM8 'own' 84% of the project.........as for AISC for the operation.....? Even if they achieve only $400-500 net per ton it looks compelling imo...........but we just don't know enough yet (as you point out anatol).
"The Project benefits from the lack of a mining pre‐strip, a low strip ratio, a conventional flotation process plant, an adjacent water borefield, a nearby low cost hydro‐electric power supply, available labour and in particular excellent transport infrastructure".
Discussions with potential financiers have commenced and the PFS is due to be completed in September 2019................off take discussion are on going at this time also................so I would say that in about 6 months time we'll know if our ramblings/comparisons are 'way off or in the ballpark'.
PM8 does appear to be undervalued at the moment imo. But until binding OT's and more definitive $$ figures and studies are forthcoming we'll just have to wait for the wider market to 'sit up and take notice' and then we should hopefully see some significant value accretion.
Have a good weekend people.
