Hi Peter
Was my form OK
Karen
On Sun, Jul 25, 2021 at 10:09 PM Peter Curtis <dmarc-noreply@xxxxxxxxxxxxx>
wrote:
Financial Health Warning : not for the feint hearted.
Our new trading platform allows us access to the Australian stock market.
This share - Peak Resources (PEK) - has long been one of my favourites but
I have been unable to buy it via my Hargreaves Landsdown account.
This small Australian miner has 100% ownership of a cracking Rare Earth
Element (REE) deposit called Nagualla in central Tanzania. The geology of
the deposit is simple and the ore reserves have been very well evaluated.
The mining operation ( if they do get going) is simple and "open cast"
which means it is the cheapest of all mining operations.
The 2 main REE they have in good quality are Neodymium and Praseodymium -
bot much sought after for use, among other things, in high strength
magnets. There is a scarcity of REE deposits - many are located in China
and it is of course a great thing to have a deposit outside of China.
The company has all the plans in place and has even paid £1.8m for a very
long lease on ground on Teeside (UK) where they plan to bring the
concentrated ore and refine it. They would of course need to build this
facility as well.
They have been at this for some years now and of course will continue to
burn through cash until they get the one thing they need - a Special Mining
Licence from the Govt of Tanzania. Now then, the Govt of Tanzania has not
got a great track record on the mining front and historically was always
in fear of being exploited by foreign companies who were mainly after the
excellent gold deposits well after they messed up what was one of the best
diamond mines in Africa outside of South Africa. Of course, the foreign
companies ( like one I worked for) were intent on gaining the most and
paying over the least they could.
They do not yet have the SML although every report for the past 5 years is
citing this as being in the process of being gained. Cynically I might say
that they have not bribed the right people ! But the Tanzania Govt has
been in dispute with Barrick Gold and only just settled their differences
over the profit share of the venture.
So the share price is around $AUS 0.09 ( 9 cents) and has been lower but
rarely higher. The company raises funds from a couple of principal
investors by issuing more shares and it gets through cash in paying its
staff and basic operating costs of it office in Perth.
The background to this is that they see the price for the REE products
rise nicely BUT the only thing that will get the company going and see the
share price rise is when they get their Special Mining Licence granted and
can get the mining operation underway.
The financial data is pretty meaningless ; they seem to be able to raise
money they need fairly easily and I guess that they and their main
investors are simply sitting and waiting for the green light.
This is a link to their web site.
https://www.peakresources.com.au
Are we prepared to do the same - buy maybe just £1000 worth of shares and
sit tight until they either get mining or they fail. I think the deposit
is too good to give up on.
Peter
