questions from ree newbie, page-5

PEK's goal is to produce a concentrate, say a 25% concentrate, and sell this to China or elsewhere, who will produce 100% REEs from it.

This is the same as LYC. LYC are building a concentrator plant in Australia, cost around $106m in total from memory, to produce a 40% or so concentrate from memory.

Then LYC ship the concentrate to Malaysia for final processing.

So the PEK capital costs will be say $90m to $120m if we compare the costs to LYC's costs.

The economics all depends on the throughput. Due to PEK's alluvial deposit, their throughput would probably be much larger than LYC's for the same capital costs. But here I am only guessing.

From memory, LYC will have a final throughput (stage 2) of around 250,000 tonnes of ore (earth) for $106m in capex.

If PEK could achieve twice that throughput (500,000 tpa) for the same capital costs, my numbers show they would do exceptionally well.

regards

DD