scoping study numbers out dated, page-34

Well, if nothing else we have stirred up some lively debate.

As for my take on the recovery – have another look at the above chart I posted – does it not say Recovery and under that 56%, so you can see where it I got it from. I didn't try and hide anything !

So now to sjl in your Post #: 9852741 above – you state that PEK recoveries are closer to 80% and then you quote from a PEK announcement …”whilst recovering 86% of the rare earths”

Yet on reading the full announcement from which you have quoted PEK "also" state as follows:-

.... "for 70% rare earth recovery".......

Source:- http://www.stocknessmonster.com/news-item?S=PEK&E=ASX&N=627337

So what is the PEK recovery (not 56% - I now grant you that, thanks to the wonderful insightful posts that have followed) – but is PEK recovery of rare earths 80%, 86% or 70% - from what I have read it appears closer to 70% - (no doubt I will be corrected I am wrong)

So are the PEK numbers closer to:-

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

$42.61 x 70% rare earth recoveries = $30 kg gross

ashwil get down off your high horse - I didn't come here to denigrate Ngualla and you’re the last person I would want to get annoyed

what I set out to do is to demonstrate that the PEK Scoping Study numbers are out dated because Molycorp can’t sell the Ce oxide they have produced and many are saying that La oxide will go the same way – so calm down

all I have attempted to do is to get to the truth of what the Ngualla ore is worth per kg - and to cut out all the bs

that's the trouble with rare earth investing - it's too involved / complex for the average investor - and those that do know don't come out and explain it in plain english

I don’t recall seeing any of the regular PEK posters – tell the PEK faithful that recovery was only 70% or 80% or 86% - but there has been plenty of talk about the PEK basket price and also plenty of talk about the inground value of Ngualla – and a lot of accompanying back slapping "we have the 5th biggest rare earth resource in the world" – yet very little has been written about what the Ngualla ore is worth per kg "out of the ground", because that is all that matters

To quote Jack Lifton …..” the idea of valuing a rare earth deposit by calculating a “basket” price based on the total “value” of the individual rare earths present in the ore body is misleading in the extreme” …

Source:- http://investorintel.com/rare-earth-intel/grade-king-production-critical-rare-earths/

Misleading in the extreme – that’s what some here have been participating in with their discussions of the ingound value of Ngualla

The bottom line is:-

Neodymium is in short supply and is required for magnet production so it will have to come from somewhere – perhaps it will be PEK, who do have an excellent management team who may just be able to make a silk purse out of a sows ear.

ashwil - no picture this time, just for you !

Once again good to see the lively debate, one day we might be able to get closer to the truth of what the PEK rare earths are worth per KG out of the ground - and based on the above I believe it will be no where near the scoping study basket price

Have a good weekend PEKers