Leading rare earth authority Jack Lifton had this to say:- In...

Leading rare earth authority Jack Lifton had this to say:-

In any REE deposit, half of it is typically made up of the REE cerium, which carries the least value of the so-called light rare earths (LREEs) because it trends to oversupply, but companies have to remove it anyway, which is an expensive process. On the other hand, dysprosium, a valuable, in-demand element, rarely makes up even 5% of a deposit. What happens in the La-La Land of the markets is that many investors do not understand that 50% of the concentration at your average rare earth deposit is not worth anything. They fail to realize that the composition of the ore matters more than the grade.

http://www.businessinsider.com/the-astounding-rise-of-western-rare-earth-extraction-jack-lifton-2012-9

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Sure PEK have a world class resource comprising 75% of nothing - assuming there will be no market for their cerium and lanthanum - 75% of nothing is my view based on the assumption that PEK can't sell the cerium and lanthanum it has to produce.

In fact the cerium and lanthanum is not an asset - it's a liability because PEK have to incurr the cost of extracting these two before they can get to the more valuable rare earths in their deposit

Why hasn't an off take partner been found by PEK? - because no one wants the cerium and lanthanum is my guess

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Hey but don't listen to me ... read Jack's article and decide for your self