PM8 Peer comparison - Other REE projects analysis, page-845

I'm glad you found it informative.

This will be another long post where I compare Peak Resource metrics to Longonjo.

Why am I doing this? Well the flowsheet in the Peak Ngualla BFS is extremely similar to that of the Longonjo PFS, but also Peak have a significantly higher grade resource than Longonjo. So why not look at the operating costs as well as a few capex comparisons to see just how advantageous a high grade resource is given it has a higher strip ratio (their strip ratio is 1.78:1 vs Longonjo 0.1:1) and greater transport costs).

Peak are more advanced and do have a Ngualla Ore Reserve. For this comparison however I will be using the Mineral Reserve Estimate numbers (measured and indicated only) to compare with Longonjo's MRE (indicated only).



In this case I won't be finding equivalent cut off grades like in my last post as that is not what I am looking at here.



Note that the Longonjo PFS numbers used in the above are inclusive of 80% indicated and 20% inferred, however I have not included the inferred in the above resource comparisons table (first two tables). Inferred is of course highly inaccurate. I am using these numbers only in the table right above as until inferred is converted to indicated within the current drilling program that is the best we have.

Summary:

• Ngualla REO grade (1.66x better): 4.759% vs 2.86%
• NdPr grade (1.54x better) 1.01% vs 0.65%

Despite this:

• Longonjo strip ratio significantly less
• Longonjo access to major infrastructure is world class

Therefore:
Despite a significantly better grading resource, and therefore the need to process less feed, the operating cost per tonne of contained NdPr is still 1.16% higher than Longonjo. Longonjo's advantage in mine operating costs, strip ratios, economies of scale, and lower transport costs > Nguallas advantage in having a significantly higher grading resource.

Plus Angola > Tanzania but thats another discussion.

The Ngualla BFS is of course a significant step above the Pensana PFS, Pensana DFS June 2020

All IMO. Not advice. DYOR.