The main news from December is that they have changed their name to PEAK RARE
EARTHS Ltd.
There is no great change in the share price of around $AUS 0.07 to 0.08 .
The Market Cap is $AUS 137m and they have current working capital of about $AUS
20m . They have no debt which is nice.A main shareholder is Appian Capital
who seem to have backed them a long time now , lent money and been repaid (with
interest) recently. They are recruiting more technical and managerial staff as
they look to step up the mining operation in Tanzania and the processing
facility on Teeside.
The good news is that the demands for strong permanent magnets looks set to
increase - not just in EV's but in many motors looking to convert motion into
electricity - so Wind Turbines are also a user as are Hydrogen Fuel Cell
motors. The deposit is not just rich in 2 principal REE 's ( Nd and Pr) but
also has related Flourite, Phosphate, Barium and Niobium mineralisation ; all
valuable by products.
But it will take time for all this to come to fruition - i.e the first cut of
the mining operation, the first concentrate of ore to be generated and exported
and the first final products to come through the Teeside processing facility.
The company anticipates this in a further 3 years . During this time there will
doubtless be some technical, financial and political challenges but if they can
weather these and keep generating the required cash then we should see the
share price come good, especially if there are further scares about the supply
chain for REE's given that China produces 90% of them.
best wishes,
Peter
