Greenland Minerals Ltd (ASX:GGG) is advancing the Kvanefjeld Rare Earths Project in Greenland, which is the largest undeveloped rare earth deposit globally.
Euroz has initiated coverage on GGG with a speculative buy recommendation and a 55 cents per share price target.
The broker sees Kvanefjeld as a genuine Tier 1 rare earth project with an incredible mine life and production potential and a simple processing flowsheet.
The following is an extract from Euroz’ initiation report:do not advertise external links.au/...-of-kvanefjeld-rare-earth-project-908312.html
- "Greenland Minerals Ltd (ASX:GGG) is sitting on the largest undeveloped Rare Earths deposit globally, the Kvanefjeld Rare Earths Project in Greenland;
- The multi-element deposit has a JORC (2012) Resource of 1.01 billion tonnes at 1.1% Rare Earth Oxide (REO) and 266ppm of U3O8 for a total of 593Mlbs of contained uranium, the 5th largest total uranium resource globally;
- Recent optimisation work on a 2016 Feasibility Study demonstrates compelling economics with operating costs 3x lower and capital intensity 5x lower than ASX peers;
- REO production is 2x peer ave. at 32ktpa with by-products of 1Mlbpa of uranium and 15ktpa of Zn concentrate over a 37 year mine life;
- Based on a REO basket price of US$19.55/kg, we estimate annual EBITDA >US$450m and calculate a post-tax NPV10 of US$2,069m with an IRR of 77%, comparing favourably to current EV of US$90m;
- Updated flow sheet has been optimised in conjuction with supportive shareholders Shenghe Resources, a fully integrated Chinese Rare Earths producer with extensive knowledge of Rare Earths processing;
- The orebody is non-refractory, unique to Rare Earths deposits meaning that metallurgy is excellent from simple leaching with REOequivalent recoveries of 94% yielding a wide range of critical “magnet metals” Neodymium, Praseodymium, Terbium and Dysprosium elements;
- Rare Earths demand is growing given their use in permanent magnets for electric motors and wind turbines;
- China dominates downstream processing of Rare Earths, making it a critical mineral and of particular strategic importance globally;
- Greenland is developing into a mining friendly jurisdiction, with the government supportive of Rare Earth and uranium extraction;
- GGG has made significant inroads into obtaining a Mining License for Kvanefjeld which we expect delivered in CY20, allowing completion of BFS and FID shortly thereafter;
- Our Valuation of $0.55/sh is based on a DCF incorporating recently published optimisation numbers and risk adjusts this by 60% to reflect uncertainty around Mining License and funding;
- We Initiate Coverage with a Speculative Buy recommendation and $0.55/sh Price Target. As the largest undeveloped Rare Earths project globally with outstanding metrics, we see potential for Kvanefjeld to become the world’s leading Rare Earths mine"
.
- Forums
- ASX - By Stock
- ETM
- Euroz coverage on GGG
Euroz coverage on GGG
-
- There are more pages in this discussion • 16 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ETM (ASX) to my watchlist
|
|||||
Last
2.2¢ |
Change
-0.001(4.35%) |
Mkt cap ! $30.89M |
Open | High | Low | Value | Volume |
2.3¢ | 2.3¢ | 2.1¢ | $37.78K | 1.681M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 1510902 | 2.1¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.2¢ | 50951 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 1510902 | 0.021 |
7 | 3434730 | 0.020 |
3 | 1067315 | 0.019 |
4 | 2125000 | 0.018 |
1 | 27000 | 0.015 |
Price($) | Vol. | No. |
---|---|---|
0.022 | 50951 | 1 |
0.024 | 62000 | 1 |
0.025 | 80000 | 1 |
0.026 | 35492 | 1 |
0.028 | 72708 | 2 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
Featured News
ETM (ASX) Chart |
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online