Agree value is in phase 2 as majority of 150% production increase will likely be sold at spot - which will be at a time of high demand and favorable detached Beijing pricing. However cart before the horse as we have 5 years from FID to reach stage 1 full production of 4400T therefore stage 2 is some ways off however - they will need to spend plenty on JORC confirmation particularly at depth to confirm any stage 2 progress - certainly would want to process our own not third party - there are other leases nearby that could be acquired if their drilling proves worthy - the market is very forward thinking and providing stage 1 delivery - CAPEX/OPEX is delivered ARU should be in a very favorable position.
The heavies/SEG is at todays pricing combined value of US12 million less logistics 30-40 x 20ft containers and toll processing - increase that by 150% - perhaps US20 million pa is important to OPEX (and critical heavies supply) and overall NdPr costs reduction - obviously scale (stage 2) reduces costings considerably - more shite to India as well.
ARU Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
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