why ntu

Once again just to refocus and summarise NTU's appeal, I have compiled an up to date list (and would appreciate additions) as to .. why NTU

- First Mover Advantage – NTU will be the next Heavy Rare Earth Elements producer (Yttrium and Dysprosium concentrate) in the western world – with target production date beginning 2015 - a full year earlier than other Canadian and American rivals also operating in the Heavy Rare Earth space

- Very capable management team, led by George Bauk, who has assembled a very experienced board. Management has delivered on its de-risking strategy and is progress rapidly towards production.

- Dudley Kingsnorth on the board has more than 20 years experience in development, evaluation and marketing REE projects. His experienced is unrivalled in the world of rare earths, it’s the type of experience money just can’t buy, and the fact he agreed to go on the NTU board is a strong endorsement as to the future of NTU

- In addition NTU secured the services of geologist John Goulevitch from Arafura who helped discover the world class Nolans Bore deposit

- proving up high grade Dysprosium (average grades around 9%) and Yttrium (average grades around 67%), and test work reveals 90% recoveries, (these are outstanding grades)

- both Dysprosium and Yttrium are on the US Pentagon critical list (there just ain’t enough to go around)

-NTU have already done the work on the extraction of a heavy rare earth concentrate, this alone puts NTU about 5 years ahead of most of their competitors, and the Pathway to Production is on schedule (see last quarterly activities report for the Pathway to Production Schedule)

- NTU have already costed production estimated at a cheap $90M Australian dollars, using proven simple methods which have been used in China for the past 50 years. Bateman Engineering were engaged and have completed an independent capital study estimate of $89M with a confidence level of + / - 35%. This is very low capital expenditure to bring a project of this nature into production.

- The economics appear very favourable with (my guess) about a 1 year pay back, which is outstanding for a project of this nature. At a PE of 7, with 200M shares out, equates to $3.15 per share – please see hotcopper Post #: 7630883 for calculations.

- largest shareholder with 19.5% is a Chinese national Conglin Yue who previously ran China's Baotou Steel Rare Earth company for the Chinese Government. Baotou Steel Rare Earth is still the largest producer of rare earths in China. If anyone knows about the future prospects of heavy rare earths it will be Conglin Yue, and he has backed NTU.

-next biggest shareholder is Lynas with 7.6%. NTU heavy rare earths would be the perfect fit with Lynas light rare earths. This makes NTU the perfect takeover target for Lynas, and I expect a takeover premium will eventually be built into the NTU share price

- NTU is a low issue stock with only about 200M shares out (includes exercise of options)

- Alkane Resources have stated that they have the highest % grades of heavy rare earths in the world (see http://www.alkane.com.au/reports/asx/pdf/20100817.pdf). NTU has been reporting results as good as if not better – and whilst NTU are still working on a JORC resource, they may just end up with the worlds riches heavy rare earth grades.

- Potential off take partners are lined up, and several unsolicited approaches have been received by NTU from globally high profile organisations. NTU have reported that engagement with these potential strategic alliance partners has accelerated since the New Year.

- NTU could conceivably get into production without any further shareholder dilution, assuming a JORC resource is quickly followed by off take agreements being put in place


- the single previous explorer in the area, was Japanese company PNC Ltd, which had identified a 20km long belt of geology. PNC created a sizable dataset, and NTU have access to the PNC exploration data set. This explains how NTU have been able to fast track their own exploration and discovered HREE at all greenfield sites which have been drilled.

- they moved early to secure the rights to all Rare Earth Elements for the majority of surrounding tenements. We now know why they did that, they had access to the historical PNC exploration data base. They knew what they were securing.

- there is a critical world wide shortage of the two heavy rare elements Dysprosium and Yttrium, which comprise the majority of the NTU deposits, and these two heavy rare earth elements are proving to be easily extractable

-China can't just turn on the tap, especially for HREEs. China is already having difficulty finding HREEs. Given time, China will likely become a net importer of the heavy and rarer REEs.

- the BOTs are back, indicating accumulation by a potential new major shareholder is in progress

The fundamentals are right

The product is right

The shares are held tight

The future looks bright

NTU NTU NTU


Good luck to all NTU shareholders