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FWIW Building a carbontae facility of the size they are talking...

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analyst99

1,969 Posts.

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19/02/20

14:05

Post #: 43022138
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Originally posted by analyst99: ↑

concentrating REO from say 2% to 40-60% is totally normal. it is how the industry works. The starting point changes by deposit.

LYC is c.8%. PM8 is c2%. Just means more ore to get to the concentrate grades of circa 40-60% TREO which equals more opex.

2,000/t / 2/kg is about right i reckon for the PM8 REMC based on current prices bbbbbut it will depend on the final concentrate grade (the PFS with have this in it as that is what the test work is for). They need to find a sweet spot for cost and grade to decide what yield. ie they might be able to recover 80% of the material and get the concentrate to45% TREO or go 50% recovery and have it at 60% TREO its a question of the economics. The theoretical limit for REMC grade is something like 64% (based on chemical mass you can't go higher than that of TREO - the other % is the remaining elements bound to the RE like oxygen)

RBW are doing low grade manual mining of 45-60% grades in the ground. This is highly unique insane grades. These are above a larger resource of 1-2% TREO.

The veins are able to be sifted and sold as an REMC product without any real processing. They have 19% NdPr in their basket which is ball park to PM8 and not 'low'. 20% NdPr is considered 'good' in Japan. Many in China have as low as 10% NdPr.
So i think RBW prices are definitely a strong guide for PM8 if they are selling a concentrate too. They are the only other seller in the market.

RBW are selling to ThyseenKrupp - a very reputable counterparty. The fact is that REMC products are lowly valued. 70% discount to basket price is what it is. Incidentally, the discount is circa 30% for a carbonate (thats the 'cracking and leaching step' which Lynas is moving to WA). Once you get to separated you get 100% contained value. (that lynas's malaysia step).

There are no operational cracking and leaching or separation facilities (aside from Lynas) outside of China. Mountain Pass has an idled facilitiy which is due to come online next year.

Selling the REMC is a good method to get into low capex production, and go for some cash flow, but is not a cash cow situation. I can guarantee PM8 will eventually announce they are 'looking into/investigating processing'. It is the only path they can really monetise the resource to the level of magnitude that makes it all worthwhile.

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FWIW Building a carbontae facility of the size they are talking about will doube the capex of the project at least

PM8 Price at posting: 24.0¢ Sentiment: Buy Disclosure: Not Held
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