MEI (ASX) General discussion (MEI)

Originally posted by setfire2thehive ↑

Do you have a link at all mate to save the search.

Pretty interesting; what's the head grade assumption here. just trying to understand if there's a volumetric difference in downstream requirements from a capex perspective. I recall 1000-1500ppm average.

additional interest would be in the processing methodology. I recall 30-35% TREO recoveries and can't recall if that was slightly acid dosed.

there's probably a few factors here which would suggest Mei/vmm etc in area with double the grade and almost double the recoveries would have a vast amount more REO out the back. from an aisc perspective this would render both projects potentially much more economically viable compared to the economics in the PEA/SS for aclara.

Whilst I acknowledge these may neither have a material affect in the capex and like you think reports have underestimated capex both would have vastly more favourable economics imho.

still much more work to be done to define the process circuit for the asx plays but with a much higher head grade and much higher recoveries - and conditions they've got a very good chance to delineate a low capital intensity and also better margins on revenue.

SF2TH

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Located Aclara PEA/SS

https://assets-global.website-files...e97f4c1f9_PR_Carina Module_PEA VF_clean_2.pdf

Some curiosities in this though IMHO - now i'm back on the desktop.
4800T of TREO for 470M USD does not add up at all IMO. That's 100usd/kg received for a 90% MREC.
let dig deeper.

I found the concentrate content of the valuable elements dy tb ndpr here. do not advertise external links.au/...arina-module-rare-earths-project-1039144.html

They do not publish their full REO suite so unfortunately you can only input the TREO and the valuable elements and then make an assumption of the make-up of the remainder of the elements albeit low value.
I assumed the ppm of the remainder of the elements by averaging the compositions for similar REO plays in brazil.

I thus arrive at this as their composition.

largely aligns to the NdPr content and Dytb content in their publish resource in november.
https://www.mining.com/sponsored-co...esource-at-its-carina-module-in-goias-brazil/

metallurgical response found https://www.aclara-re.com/carina-module

again unreported NdPr... so i'll have to figure that out based on what they report the NdPR content to be in the concentrate. Annoying...

here is the product below

So with several inputs and several variables left blank. Need to try and estimate for the unreported recoveries of each element.

The below arrives at the 26% NdPr and 4.7% Dytb with the overall recovery 36.9% as per previous table.
Assume a 92% TREO concentrate.

There we go. That's probably ball park what we're actually talking about. I land at pretty similar tonnage and using their opex per tonne see annualised opex is same.

If i had the full suite of elements and the full suite of recoveries i could replicate it but this is my best go in 10minutes without using multivariant calc to get the exact inputs based on unknown variables.

At todays prices (or close to as per SMM) Aclara's carina would generate 14M USD p/a for a 9.6mtpa plant costing 576M USD to build. Aka project is junk.

Compare this to MEI's project. Even if i use a low value head grade (aka their average jorc or lower) we generate 86M usd p/a profit for only 5mtpa plant. Half the capex cost probs and 5 times the profits...

input a higher feed grade assuming high grade resource targetted and up MEI to 9.6mtpa.

That's at todays prices... Blow their project to smithereens.

VMM for a comparison using it's average grade. = 145M USD profit p/a. at 9.6mtpa.

IMO both MEI and VMM vastly better investments given the better grades (2-3 times higher) with better recoveries. Proving viability even at very depressed prices.

Carina almost losing money at todays prices imho as per my calcs. Wouldn't touch.
The only way they have generated those bogus revenues is using a forecast or much higher grade REO prices.

Disclosure i hold MEI and VMM.

SF2TH