Ann: Trading Halt, page-45

Here is what I wrote on 14th February 2022, in response to the sale by Appian, of their 19.9% holding of Peak to Shenge:

"Quite frankly, I don’t think this is good news for shareholders or the company or for the supply of RE’s to the western world. What Appian thought they were doing is beyond me. What this means for Teeside is an unknown, but I can’t see Shenge processing there, instead of China. Perhaps they will do a deal with the Government of Tanzania and promise to do a bit more of the refining in Tanzania (the lack of refining in Tanzania being one of the holdups in the SML). Anyway, I don’t think the UK government is going to take too kindly to a Chinese firm having such a large stake in a critical minerals firm - look at the reaction to Hauwei and the installation of 5G! So far as I see it, this is bad news for west with little to recommend it.PEK Price at posting: 85.0¢ Sentiment: Hold Disclosure: Held"

Today's share price is a reflection on that comment. We have moved on, and for the worse. The share price then $0.85, is now $0.115. If Peak ever get this mine off the ground, they will be exporting its RE ore to China, who will not only put limits on what can be re-exported of those refined RE's, but will now, with a Trump victory, face stiff tariffs on the EV's and wind turbines that they export to the USA. Possibly, other European countries will join the tariff war too.

Then we have the sale, (or non-sale) of the land on Teeside. The UK commercial property market is not in good shape, and I should know, as I am involved in it. Peak makes hopeful noises about the sale, and it was a good move to pay to convert the lease to a freehold. But I fear that property prices in the UK are not going through a great time at the moment, and on top of that we have foolishly, just elected a socialist government that is the most anti-business for a good many decades.

On the other side of the African continent, Pensana (PM8) once quoted on the ASX and now on the LSE, is moving forward with developing its RE mine at Longonjo, Angola, and has received considerable finance from the Angolan Government to do so. A fair amount of the preparatory work is underway and we are waiting on a start to the ore processing plant at Saltends on Teeside. Planning for this has been granted, but construction not started.

What is the future of Peak? - As the holder of shares for a number of years, all I can do is hope. However, I fear that Shenge will not progress the mine until it suits them, and that time will be when they own Peak Rare Earths in its entirety!

Quite frankly, I don’t think this is good news for shareholders or the company or for the supply of RE’s to the western world. What Appian thought they were doing is beyond me. What this means for Teeside is an unknown, but I can’t see Shenge processing there, instead of China. Perhaps they will do a deal with the Government of Tanzania and promise to do a bit more of the refining in Tanzania (the lack of refining in Tanzania being one of the holdups in the SML). Anyway, I don’t think the UK government is going to take too kindly to a Chinese firm having such a large stake in a critical minerals firm - look at the reaction to Hauwei and the installation of 5G! So far as I see it, this is bad news for west with little to recommend it.