scoping study numbers out dated, page-24

Discussion on NTU belongs on the NTU thread, but since you asked it here, I assume it's because you want to compare NTU to PEK - so the following is simple straightforward answers even you might understand:-

NTU is debt free - the bottom of page 2 of the latest quarterly cashflow report will confirm this:-

source:- http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=655191 See page 2

The $8 advance which has now been repaid in full was an advance from the underwriter ACIIG so that NTU could accelerate development of Browns Range

NTU is now sitting with over $19M in the bank and NO debt

source:- http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=655191 See page 2

compare that to PEK who are on life support and at this point in time it appears cannot find a backer ... I know, I know - PEK will have funding in place by 23 February 2014 ... Rameez told me so see Post #: 9815607

The clock is ticking, and based on the above presently it appears NTU is in a much strong financial position than PEK
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NTU intends to construct a Beneficiation plant and a Hydrometallurgical plant

The Beneficiation plant will produce a 20% TREO concentrate (recovery 83% TREO)


The Hydrometallurgical plant will be fed the 20% concentrate to produce a 92% mixed rare earth oxide(recovery 92% TREO)

Cost of the Beneficiation plant estimated at $90M

Cost of the Hydrometallurgical plant estimated at $40M

Bateman Engineering did these independent costing's

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NTU basket price is presently $82 kg less the 5% lights which will be worthless so to be conservative $82 x 95% = $78 kg

Then 82% recovery via a concentrate $78 x 82% = $64 kg

Then 92% recovery via a mixed rare earth oxide with hydrometallurgy processing $64 x 92% = $59 kg

NTU should receive 80% of the FOB price for a mixed rare earth oxide - of superior product of heavy rare earth mix dysprosium, yttrium and terbium), so $59 x 80% = $47 kg gross

lets now compare that to PEK who have a basket price of $52.34 less $6.34 for the La which by all reports will be in massive over supply and worthless; less a further $2.39 for the Ce which is already in oversupply and worthless by current reports (Molycorp can't sell their Ce oxide)

$52.34 less $6.34 less $2.39 = $42.61 (excluding La and Ce)

Now that's really scary - NTU will be able to sell a mixed rare earth oxide for more than most will be able to sell their separated rare earth oxides - including PEK

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Production costs:-

no firm numbers on total production have as yet been supplied other than milling costs (for a concentrate) on 15 March 2012 announcement and hydrometallurgy costs (for a mixed rare earth oxide) on 6 February 2013 announcement

milling costs (for a concentrate) from 15 March 2012 announcement:-

source:- http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=582174 See page 4

Grade 0.68% sources:- http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=652533 See page 1


hydrometallurgy costs (for a mixed rare earth oxide) from announcement 6 February 2013:-

source:- http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=624173 See graph page 1

In relation to production costs NTU (like PEK) has stated it will be a low cost producer - but to be realistic you have to consider two different production cost rates for NTU - one for the open pit mining initially and one for the underground mining later ..

my guess around $12.40 kg for the open pit (milling costs $7kg plus hydrometallurgy costs $4.40kg plus mining costs say $1 kg for the open pit) and say $20 kg for when they move to the underground mining (milling costs $7kg plus hydrometallurgy costs $4.40kg plus mining costs say $8.60 kg for the underground mining)

So initially open pit $47 kg less $12.40 kg = $34.60 kg net

That's just over a 1 year payback of capex. from the open cut for NTU verses PEK which will be closer to 5 years are excluding the worthless La and Ce

then NTU underground $47 kg less $20 kg = $27 kg net

Again based on the above I have demonstrated NTU will be able to NET more from a mixed rare earth oxide than most will be able to sell their separated rare earth oxides for - including PEK

- it's because NTU's ore is so rich in the highly desirable and scarcest heavy rare earths.

Why do you think Dudley Kingsnorth went to the trouble of getting a personal number plate of xenotime ..

my guess is it is because he believes that NTU will be the next heavy rare earth producer in the world

oh and one final thing - NTU is more advanced than any of the other heavy rare earth explores with its metallurgy test work - and that includes Tasman, Avalon, Quest and Ucore (I have not made comparison to PEK because PEK has the less desirable light to mid rare earths)


I do hope the above answer has satisfied your curiosity