Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

In the news: Peak Resources

In the news: Peak Resources

In the news: Peak Resources (ASX:PEK)

 

FROM THE BROKING DESK

Peak Resources†† has announced that it has received the Environmental Certificate for its Ngualla Rare Earths Project in Tanzania. This was needed for the company’s application for a mining licence, along with a completed BFS. The company notes that the BFS is on track and due for completion in April 2017. Below we provide a reminder about ASX-listed Peak’s extremely exciting project.

Peak is focused on delivering an integrated rare earths project. The company’s 75%-owned project combines the Ngualla rare earths deposit in western Tanzania with downstream processing at a solvent extraction separation plant in the UK, producing a range of rare earth products. Approximately 85% of the value of the final product is associated with a high-purity neodymium and praseodymium oxide.

Ngualla is one of the world’s largest neodymium and praseodymium (Nd/Pr) deposits. Peak is in the process of constructing a UK-based rare earths leach recovery and separation processing plant in Teesside, UK. The final products from the project are planned to include: 2,300tpa of Nd/Pr rare earth oxides; 250tpa of mixed samarium, europium and gadolinium rare earth oxide; and 5,900tpa of cerium/lanthanum carbonate (equivalent to 4,240tpa of contained REO).

Nd/Pr are exposed to the high-growth permanent magnet demand. Nd/Pr are used in combination to create the high-power permanent magnets that are integral in the construction of electrical motors and generators, specifically in the rapidly growing market for electric cars, bikes and wind turbine generators.

Prices of rare earths, including those for Nd/Pr oxides, peaked in 2011 and have since fallen back to pre-bubble levels. We note that Bloomberg’s Nd/Pr index now indicates that prices have increased 8% YTD in US$ terms.

This content has been approved under section 21(1) of the FMSA 2000 by RFC Ambrian Limited ("RFC Ambrian") for communication only to eligible counterparties and professional clients as those terms are defined by the rules of Financial Conduct Authority. The contents are not directed at retail clients as RFC Ambrian does not provide investment advisory services to retail clients.  RFC Ambrian publishes this document as non-independent research which is a marketing communication under the Conduct of Business rules. It has not been prepared in accordance with the regulatory rules relating to independent research, nor is it subject to the prohibition on dealing ahead of the dissemination of investment research. It does not constitute a personal recommendation and does not constitute an offer or a solicitation to buy or sell any security. Neither RFC Ambrian nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication; provided that this shall not exclude liability to the extent that this is impermissible under the law relating to financial services. All statements and opinions are made as of the date on the face of this document and are not held out as applicable thereafter. This document is intended for distribution only in those jurisdictions where RFC Ambrian is permitted to distribute its research. In particular, it is not intended for distribution in and is not directed as persons in the United States.  On the date of this document, RFC Ambrian, RFC Ambrian's holding company, persons connected with it and their respective directors may have a long or short position in any of the investments mentioned in this document.
RFC Ambrian is a member of the London Stock Exchange and is regulated and authorised by the Financial Conduct Authority. RFC Ambrian is registered in England and Wales no. 4236075. Its registered office is at Level 5, Condor House, 10 St Paul’s Churchyard, London EC4M 8AL.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use