As some may remember. I was recently questioned by a certain few who continually do so to belittle any credibility in GGG. I had stated... So to recap. GGG is the world’s largest undeveloped rare earths project. Recent optimization work on a 2016 Feasibility Study demonstrates stunning economics with operating costs 3x lower than its ASX peers Also capital intensity 5 times lower than its ASX peers REO production is 2x peer average too So at 32ktpa with by-products of 1Mlbpa of uranium and 15ktpa of Zn concentrate. It has over a 37 year mine life open in all directions and potentially lifetimes; Based on a REO basket price of US$19.55/kg, the annual EBITDA is US$450m and calculate a post-tax NPV10 of US$2,069m with an IRR of 77%, Updated flow sheet has been optimized with the fully supportive shareholder Shenghe Resources, the worlds second biggest rare earths producer with extensive knowledge of rare earths processing who wishes to supply all of Europe with it as there is no other REO resource of any worth to them nearby The orebody is non-refractory, unique to rare earths deposits meaning that metallurgy is excellent from simple leaching with REO equivalent recoveries of 94% yielding a wide range of the most critical “magnet metals” Neodymium, Praseodymium, Terbium and Dysprosium elements due to evolve into the highest demand in current and future future technology demand The seller was incapable of seeing all this and sold it for only $40million which is a bit stunning really when it earns $650mill per year, Clearly no idea at all. GGG, as is, has been evaluated at 55 cents per share by an independent body reknown to be one of the best in Australia and thats before the EIA or anything else is approved. SRK was employed by someone who had no idea and couldnt understand how GGG could be so good to audit the company. When he was told to them GGG was even better than they imagined and everything was in order they fired the company in disbelief and upset their intentions failed. SRK were so impressed they have been working with GGG ever since which is great given they are one of the best around in auditing ability. GGG management achieved all of the above and that makes others very jealous. Like them or lump them. Those are the real and true facts .
GGG Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
