London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
51% control and de-risking.
And here it is - obvs all these numbers will most likely improve when we get the results of more drilling in the high grade zones.
"· Post-tax NPV 8(2) of US$ 283.3 million
· Post-tax IRR(3) of 25%
· Payback from first production: 2.5 years
· Production of 15,000 tonnes per annum, on average, of Mixed Rare Earth Carbonate ("MREC"), at an average price of US$ 13,558.4 per tonne of MREC(4)
· 18 years Life of Mine ("LoM")
· Open pit mining operation, 750,000 tonnes of ore extracted and processed per annum
· Two stage recovery process, consisting of comminution and flotation, followed by hydrometallurgy
· LoM EBITDA(5) of US$ 1.67 billion
· Initial Capex of US$ 276.3 million"
So after the excitement of Sept 25th I noted the following upcoming news events - getting close to something...
So upcoming:
> Scoping study released 3rd week in October
> CPR to be released in October
> ON publishing CPR REE get to 51% ownership
> October start the Pre-feasibility study
in a word....momentum.
Treo is not the key metric. Mining is a tiny part of REE production cost.
What is critical is the ratio of NdPr to the worthless REE.
This is because it cost just as much to process junk as it does NdPr.
For example to process 1000kg TREO it will cost $10,000 in reagents. This would yield 120kg of NdPr.
Another mine, MKA (18% NdPR) would yield 180kg. 50% more income for the same cost. And MKA is probably unviable at its $44, 000 per ton production cost.
Top ratios are 29%. Costs are $33000
But the ionic clay mines in Australia have costs of 31,000.
You guys are looking at double that.
This is why the sp is tanking. Its completely uneconomical.
I agree. Very eary days but very encouraging start with resource viable and open.
I agree. Very eary days but very encouraging start with resource viable and open.
I'm very encouraged by the initial MRE, people forget how early stage this project is and how the resource will grow as additional drilling and exploration is done across alternate targets.
I dug out Mkango's MRE of Songwe when it was first released in 2012 and here's how it stacks up against Altona's
Mkango - 11.21 million tonnes at 1.95% TREO = 218,477 tonnes - NDPR 0.34%
Altona - 13.6 million tonnes at 2.42% TREO = 329,120 tonnes - NDPR 0.31%
This project should deliver a lot of value for holders as it progresses through PFS to DFS and the resource is sured up. I'd be very surprised if the scoping study came back saying the project is not economically viable based on the results from this MRE.
Once the scoping study is released Altona will also take on 51% control of the asset which will also significantly derisk the project.
.31%/2.42% =12% NdPr
Thats dismal, average is 19%.
Uneconomic resource, its never going to be mixed.
Hopefully not the roast, those boys are kiss of death
Definitely In the " M&A" league now ...
Cedric has been all over the place today, here he is on Stockbox
https://www.youtube.com/watch?v=fNti3mlFhbs
I expect he'll pop up on the Sunday Roast soon enough.
Other interview today, with Zak Mir:
https://zakstraderscafe.com/cedric-simonet-ceo-altona-rare-earths-2/7771/
So upcoming:
> Scoping study released 3rd week in October
> CPR to be released in October
> ON publishing CPR REE get to 51% ownership
> Next month start the Pre-feasibility study
in a word....momentum.
Far better economics on a high-grade deposit. If they can increase the size while maintaining this TREO% going into PFS then this becomes a seriously valuable project. Market currently snoozing on this one, that will change in time.
Thanks @kalasin - good to compare.
Can't help but feel as these boxes are getting ticked off this must start to get noticed.
Just for reference, Mkango ( MKA ) have a MRE of 18.1 M tonnes @1.24 TREO! Below Altona's cut off grade
Still not got back in here, there seems to be no news, flying well under the radar still, if this dips into the 3.** i'll start accumulating
Detailed article here, page 22: https://user-54716422671.cld.bz/Modern-Mining-August-2023/22/
Nice interview with LSE today, highlighting:
1) Publication of the Maiden Mineral Resource Estimate next month
2) Publication of a Significant JORC resource estimate
3) How they intent to fast-track further drilling to extended their resource estimates into a world class rare Earths opportunity
The company has made it clear they'd prefer to see warrants exercised as there's a lot of funding available there. They better start pumping the SP!.
Could it be after rns or presentation. Couple of days later maybe imho
They've already said there will be an equity raise but not yet.
Need to raise capita to fund? Equity raise maybe imho