Little gem, page-14

so much potential, flying under the radar, cannot believe current market cap

not sure if this has previously been posted

https://unauthorised investment advice/resources/moneytalks-with-rare-earth-demand-soaring-here-are-2-stocks-perfectly-placed-to-cash-in/

However, Goldberg said his preference for the sector is in a much smaller company named Astron.

“Collins Street Value Fund have been following Astron for a number of years, but given its size and liquidity, we’d never been able to find a way to meaningfully invest in it until quite recently – when we offered to provide funding via a convertible note,” he said.

“Our thinking is that the company is worth over $3 per share, and against a current share price of just 55c seems a highly attractive space to be.

“The company has an exceptional asset in the Donald Mineral Sands Project based out of Victoria – which is an excellent jurisdiction, the team have over 30 years of experience in development, processing, and trading zircon after having sold a production facility to a French company for over $300m in 2013.”

Within the Donald deposit area, there are Ore Reserves of 602 million tonnesMt of ore, with an average HM grade of 4.8%.

This roughly equates to an in-situ ore body of 28.9Mt of heavy minerals, comprised of 5.4mt of zircon, 9.2mt of ilmenite, 8mt of higher titanium content products of rutile and leucoxene, as well as a significant rare earth element component of 491,000t.

“Astron’s project is the largest undeveloped zircon project in the Southern Hemisphere and is big enough to single handily provide five full years of global demand,” Goldberg said.

“The mine life is expected to be longer than 40 years, and our funding was provided to enable the company to redo a DFS.”

The company had previously produced a DSF (also in 2013), which produced a NPV of approximately US$1.4Billion.

“At the time, production and financing was put on the back burner due to some global issues but since then the market has tightened considerably, and the environment is materially better for the industry,” Goldberg added.

“Assuming the upcoming DFS lands at even half the value of the previous one (which is unlikely given the improved environment), we are still looking at a company trading at about 20% of the value of its likely intrinsic value,” he said.

Scale and longevity, premium zircon and rare earth production – represents a major value opportunity
• Ore Reserve underpins expected production life of over 40 years with exploration upside
• One of the largest undeveloped zircon reserves globally (~5 years of global consumption)
• High value minerals (zircon and rare earths) account for ~80% of revenue, making Donald a strategic and independent source of these critical minerals