Member Info for Tornadotony

Hi Chinasyndrome

If SP has been disappointed, he may be less so after George gave his presentation today. The overall schedule is still on for building the plant 2027 and being on the market in 2028 for RBW. They are pursuing solvent extraction methodologies as leads to better economics and Capex for building the plant and gives options of producing MREC and shipping to a second plant in either USA or Europe to deliver separated rare earths as finance providers would give far more attractive funding terms possibly over a single site all in South Africa. The MREC is 55% after 65% recovery from the gypsum processing and the final flowsheet that part of the process is not far away. The separation stages for NdPr at 99.5% will happen but are still undergoing trade off economic studies and critically being mindful of water scarcity and other environmental issues. The complexity and cost of operations is being reduced. The context of all this is that if rare earth companies do not do all the feasibility work beforehand multimillion mistakes on fully built plants have occurred in the past such as in Brazil with ionic clay extraction. A few serious blunders happened State side on hard rock mining of rare earths. Getting it right is perhaps better than rushing things to early and that applies to RBW as well as Pensana. I still believe RBW will be a success story and they will have another major production site in Brazil in due course.

Tony

The article says depending on financing and permitting outcomes. They are on the same time line as RBW but have they done robust studies before building such a plant?

I suspect at huge cost per kg.

Hi Ripley

The trade off studies were raised in the summer, but nothing was given on timescales. Let us say George has been very economic on communicating the DFS time line and now they have chosen to be somewhat vague again. I think we can all appreciate that desire to get things as best as possible. However there is line where perfection has a cost and that advantage is eventually lost in time as others get established in the market. That said I can understand why one of the aims of doing the trade off work is to ensure the least consumption of water in an area of South Africa that has a scarcity of local water supplies and that of course is necessary to support the future permitting effort. I think it is helpful to have an idea of the positive impacts by getting this right otherwise it looks like a project there is never go to enter near market and on the market outputs.

I believe we were given a chance to take some shares off the table in the last rally by George not saying anything in the summer on the DFS. I did the usual like yourself ensuring and created a 6% gain from buying and selling to create like a dividend from having funds tied up in the stock. If I had a crystal ball the best thing would have taken profits on the lot and bought it back today but alas we are not privy to all the info and the project itself is encouraging us to be more like investors rather than day jockey traders.

All the best Tony

It sets out more detail on what the trade off studies are covering and why they are being done.

SP Found what you were saying. Yes they may have completed cerium depletion etcetera but now putting the flowsheet together in an evaluation trade off runs.

SP I thought MREC was already optimised at 65% which is well above other grades of MREC sold. We were clearly told recently that the front end was complete.

Cadellin

In a presentation in late September he says DFS was 4 months away extending it until end of January. In the presentation at the end of the first week in October he lists the DFS and permitting as part of the next 12 months of outputs therefore separating it from flow sheet outputs identifying 99.5% purity as being achievable in 5 to 6 weeks time. They have introduced a series of refinement studies to perfect what is the best final recipe. As annoying as it is I can see why they just need to get this right as it impacts construction especially if they have a phase 1 followed by phase 2 add on with MREC accelerated and fine ore separation arising a few months later. Anyway all should be made transparent tomorrow. I suspect a funder is in the wings wanting it all to be done this way which is a question for someone else to ask. Tony

In case the article is blocked- China is to agree only a one year trade deal on magnets and rare earths.

Https://www.benzinga.com/trading-ideas/movers/25/10/48446192/rare-earths-rollercoaster-stocks-tank-as-export-controls-get-a-breather#google_vignette

George gave two earlier presentations where he divides the delivery of the DFS as one objective from the determination of a 99.5% purity flow sheet. The flow sheet objective was due this December and the DFS earliest date previously hinted was January or February in 2026 in the late September and early October presentations. The logic of their separation is partly that the word will be achieved was used in today's RNS regarding the flowsheet outcome. I suspect the company has more than one methodology likely achieving 99.5% for NdPr purity. However different methods being tested may have different cost implications, they may have different impacts on recovery data especially for follow on separation of individual high value rare earths that may now deliver additional income. I therefore believe they are maximising their methodology in the DFS document but George can not run down that path for ever and a day and needs to give a better indication of closure on Wednesday and we need to see evidence of a team committed to project completion to get on with financing and building the production plant.

I also speculate if the manufacture of MREC is being done first because the DFS report is likely to identify a two stage plant build process. The first delivers MREC at high quality and the plant is in production relatively quickly and more easy to commission. This follows continued plant development in phase two for separation of individual rare earths which is partly funded by on-going MREC income and off sets any future inflation on total plant development costs. It would be helpful if we can get more explanation on this.

I hope someone asks why they could not have put permitting with financing together in earlier plans although I suspect off takers might have accelerated part of that process or other reasons may be offered which George may share with us.

Hopefully they will all get answered on Wednesday.

Came in to support this share at the 650p mark after the news. Took profits less than one month in this morning. I wish all the investors here all the best. Needed funds elsewhere in case I need to deploy on a wider market pull back. Tony

Reetech

Those results arrive in December or we should have confirmation on Wednesday. They are well underway to achieve it with the changes they reported on the front end. The issue is dealing the DFS to accommodate all the refinements with costings.

It is wrong to say that they have not made progress when they clearly have,

We shall get clarification on the 29th. I was under the impression the flow sheet work would have been proven in 5 weeks time but the DFS was running a bit later into the New Year.

Https://timesofindia.indiatimes.com/business/international-business/resourceeu-eu-to-cut-reliance-on-chinese-rare-earths-recycling-and-global-ties-in-focus/articleshow/124812799.cms

Light reading and hopefully someone on the RBW team is making a forward move to EU about the future resource the company has and the impact of its technology. Now is the time to get into this play. Wishing RBW to press ahead at God's speed.

Ripley

Eventually they run out of sellers as RBW becomes way oversold. Only 5 weeks away from news unless George has been fibbing or over egging the pudding. Tony

Besides, nobody knows for sure when the overvalued and massively in debt corporate model in USA with its unbelievable sums of additional debt thrown at AI all blows up. Target axed 8000 jobs today for a good reason. USA economy is k shaped, but most Americans are on the downward side. It is all held together on faith. Hence the sensitivity by Trump on the Ontario Reagan commercial on tariff policies and why he ceased trade deals with Canada. It attacks the faith covering up the cracks underneath. Good to have any part of the share portfolio in cash for when the bargains arrive.

Daramuda I keep asking SP to stop, but he does not listen. He takes great joy in doing it like an untrained puppy.

We get two lots of news by the second week of December. Hopefully confirmation on purity of separation of rare earths over 99%. The second news was the feasibility study regarding Brazil project if memory serves me correct.