Ann: Acquisition of Potential World Class Ionic Clay REE Project, page-180

The best way to value a project IMO, is via a discounted free cashflow model in the form of NPV and IRR via a SS, PFS, DFS etc etc IMHO and then applying a discount for phase of asset.

Also, it's a concentrate revenue and if you've got that calculation you can easily deduce a companies annual revenues pretty seamlessly which i find handy to have at my disposal to do so as information comes to light.

Using your example above. 100% Tb recovery, 0% recovery of everything else. head grade of 5ppm.


If you knew the front end design throughput you can pretty quickly work out the annual revenue on that arrangement. Which btw is the concentrate revenue figure multiplied by the tonnes of that product produced which as a 92% MREC assuming 100% payability is 111M USD and ~83M USD at 75% payability.

If downstream and separated you can take the 100% purity value = 120M USD.

Imagine a project with 0.2% recoveries on a TREO basis still an 83M USD p/a revenue.

Inputting back in the actual currently reported recoveries but keeping the existing example of throughput 12.5mtpa.



You can see the reason for the interest right, because the upside on the revenues is substantial. Just need to delineate a 200mT or so size resource to get you the 15-20Y LoM or abouts and then prove that these met results can be reflective across that resource.

Then the final piece is the all in sustaining cost to work out actual profits. The processing costs (reagents/lixiviant cots etc) are generally a driving factor - but even at the current consumption rates i think the project is economic. Hence the investment.

If you've got a quicker easier method to analyse revenues in a couple minutes with all variables considered would genuinely would love to learn or see them applied.

SF2TH