Happy New Year shareholders - great to see the continued re-rating in Ausi and the UK. The market is clearly seeing how undervalued FTE is especially considering the new REE discovery and the fantastic A238 Uranium sectionals.
As stated previously, the REE discovery will no doubt prove to be a "Company Maker".
The FTE resource would appear to be a similar size to ARU, currently estimated at 850,000 tonnes of REE! Then add the Mauritania A238 potential on top of that.
The grade and distribution are also very similar to the ARU Nolan mine - rich in Cerium, Lanthanum, Neodymium with good amounts of Dysprosium and Europium currently fetching over US$600/kg. ARU's REE mix was last month valued at +US$70/kg which is similar to the last LYC value.
ARU currently has an EV of over A$500m + an additional A$100m in cash. And that is pre-FID CAPEX funding.
The imminent capital raising now looks certain to be at a reasonable share price and all bodes well for the re-rating to continue for another 1-2 multiples yet.
FTE Price at posting:
16.5¢ Sentiment: LT Buy Disclosure: Held
