Finding a Diamond in the Rough
Rare Earth Part 2Last week I wrote an article highlighting the rare earth sector. The main focus was naturally in Lynas (ASX: LYC) and it was good to see the stock doing well yesterday plus the other stocks that I talked about. Greenland Minerals (ASX: GGG), Armour Residential (ASX: ARR) and Avino Silver & Gold Mines Ltd (ASX: ASM) There was a place at the foot of the article for readers to post comments and some were keen to point out that I had missed a few. Mea Culpa, I did miss a few but it was not deliberate. The article was not an attempt to be the definitive work on rare earth companies on the ASX. Far from it, I started down a strategic minerals rabbit hole and as with sucking on a spaghetti strand, sometimes you just have to know when to stop. I pulled up short so here are a few of the stocks that I was asked to look at from the Livewire feedback.
First up Ioneer (ASX: INR) Market Cap $336m.
- INR has a lithium-Boron project in Nevada.
- It is a world-class asset 146.5Mt
- AISC at bottom of cost curve around US$2510 for lithium carbonate equivalent (LCE)
- Long-life resource – around 26 years.
- US-based and in mining-friendly Nevada.
- Strong board.
- Estimated Capex US$785m
- Shovel ready and permitted by Q2 2021.
- Only DFS level project in the United States
- Discussions progressing with a range of potential strategic funding partners for Rhyolite Ridge.
Vital Metals (ASX: VML) Market Cap $84mFirst up here is the expected demand for Rare Earth Magnets
- Recently completed a capital raise for $8m. VML is in the rare earth business. It is the largest independent supplier of clean mixed rare earth feedstock outside China.
- MD is ex-LYC. COO is Ex LYC and NTU.
- 7MT at 1.46% REO (measured, indicated and inferred)
- Located 100km from Yellowknife, Canada.
- Fully permitted for large scale operation
- Operations commencing 2021
- Low-cost production costs. Production of a minimum of 5,000t contained REO by 2025.
- 97% recovery into solution via hydrochloric acid with using industry-standard process.
- Maximum total construction cost for beneficiation and rare earth extraction plants of $20m.
- Plenty of money spent in Canada by the previous owner. Upper zone acquired in 2018 for C$5m.
- North T Zone is considered one of the highest-grade rare-earth deposits in the world. And it's in Canada. With considerable government support.
- Simple production process. Fully permitted. Initial North T sales will fund targeted expansion at the Tardiff Zone.
Globe Metals and Mining (ASX: GBE) Market Cap $14m
- Namibian project in Malawi.
- Cash at bank and in term deposits on 30 June 2020 of $5.182m.
- Country risk and politics at play here.
- Kanyika Development Agreement needs to be executed and the Company’s Application for Mining Licence converted into a granted Mining Licence.
Hastings Technology (ASX: HAS) Market Cap $150m
- Flagship Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production.
- It also has the Brockman project near Halls Creek.
- The company has recently raised money at 12.5c. Underwriters got left with a bunch of stock so this may be weighing.
- Good results recently from Fraser’s North and South areas.
- The company had a 20,000m 2020 exploration program.