Ann: Peak to be acquired by Shenghe following Entitlement Offer, page-157

ChatGpt in 3 seconds:

Asset Value – Ngualla Rare Earth Project

PEK's key asset is the Ngualla Rare Earth Project in Tanzania, one of the world’s largest and highest-grade undeveloped rare earth deposits.

• In a 2023 DFS, the project had a Net Present Value (NPV8) of US$559 million (≈ A$850 million at current exchange rates).

• CapEx was estimated around US$321 million, with strong forecasted IRR (~22%).

Takeaway: A$158 million is less than 20% of the project’s estimated NPV.

Comparable Deals

• Lynas Corp received a bid from Wesfarmers in 2019 at a 44% premium, which was rejected as undervaluing long-term prospects.

• American Rare Earths rejected a $400M SPAC deal in 2024 on similar grounds — undervaluation of long-term strategic value.
  
  

  Conclusion

  The A$158M offer might look attractive short-term (due to the 200% premium), but:

  • It undervalues the long-term strategic and financial potential of the Ngualla project.

  • It falls far below project NPV estimates and comparable market valuations.

  • The geopolitical importance of rare earth independence may justify holding out for a better deal — especially from a non-Chinese buyer.