Peak Rare Earths
Primary ticker: ASX:PEK
Stage of development: Exploration, Development
Primary minerals: Rare Earths, Phosphate and Fluorspar
Project to promote: Ngualla Project
Project location: Tanzania
Website: peakrareearths.com
Peak Rare Earths is an ASX listed rare earth focused company focused on the development of its Ngualla Rare Earth Project in Tanzania. Once constructed, the Ngualla Project will be a large and low-cost producer of high-grade bastnaesite concentrate which will be used in a range of low carbon technologies that power the green transformation. The broader Ngualla deposit also hosts a range of other critical minerals including phosphate, niobium, and fluorspar which offers significant exploration and development upside.
Cash: AU$7.3M (30 September 2024)
Major shareholders:
Shenghe Resources – 19.9%
Management Ownership – 1%
Financials
Management Profile
Bardin Davis – Chief Executive Officer
Bardin holds over 20 years of investment banking and corporate experience in the mining and energy sectors. He was formerly the CFO of UPC/AC Renewables Australia and previously held a number of senior investment banking roles in Hong Kong and Sydney. Previous roles include the Head of the Resources & Energy Group – Asia Pacific, Deputy Head of Corporates – Asia Pacific and Head of Advisory – Australia for HSBC and Head of Metals & Mining Asia for Macquarie Capital. Bardin has significant emerging markets experience and has worked on a broad range of international M&A, capital markets and financing transactions.
Russell Scrimshaw- Executive Chairman
Russell is a distinguished corporate executive and company director with experience in large scale mining project development and operations, product marketing, finance, business development and technology. Russell was a founding director of Fortescue Metals Group and served in executive roles including Deputy CEO and Executive Director. He was a key part of the management team that developed Fortescue’s mining, port and rail operations and was instrumental in establishing Fortescue’s strong relationships with large steel mill groups across a vast Asian customer base.
More recently Russell was Chairman of UK-listed Sirius Minerals PLC (acquired by Anglo American in 2020), which is developing a large Polyhalite fertiliser project in North Yorkshire, in close proximity to Peak’s Teesside refinery site. He has also held senior executive positions at the Commonwealth Bank of Australia and Optus. Russell is currently Chairman of the Garvan Research Foundation, a non-Executive Director of the Garvan Institute of Medical Research and Vice Chairman of Ignition Wealth.
What is your rationale for taking part in 121 Mining Investment?
Engagement with high quality institutions as well as on market support and potential investment.
What recent news would you like to highlight to investors attending?
4 November 2024 – Equity Placement of $6 Million and Planned $2 Million SPP
24 July 2024 – Shenghe Investment and Funding Term Sheet
21 June 2024 – Offtake Agreement Conditions Precedent Satisfied
26 April 2024 – Enlargement of Special Mining Licence Area at Ngualla
22 April 2024 – Phosphate co-operation and development MOU with Minjingu Mines
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
• Completion of an integrated investment, development and funding solution with Shenghe Resources
• Final Investment Decision (FID) on the development of the Ngualla Rare Earth Project
• Commencement of construction
• Sale of non-core Teesside site in the UK
6 Months:
• Progress construction and development of the Ngualla Rare Earth Project
• Further evaluate the potential of standalone phosphate and fluorspar projects
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
• Price risk: Addressed by a combination of a binding offtake agreement in place for 100% of mine output with attractive payabilities and a low all-in sustaining cost that supports attractive margins across the commodity price cycle
• Funding risk: Addressed by an integrated investment, development and funding Term Sheet with Shenghe Resources, which is in the process of being documented into a legally binding agreement. Upon completion, Peak will not need to contribute any additional equity development funding
• Technical risk: The Ngualla Project has been technically derisked through the completion of a BFS, BFS Update and FEED Studies and pilot plant testwork. Development will also be supported by a strong board and management team with deep African and emerging market experience as well as collaboration with our strategic partner, Shenghe Resources
What do you think makes your company such a compelling investment?
• Compelling NdPr market outlook: Attractive long-term fundamentals for rare earths that are aligned with decarbonisation and energy transition
• De-risked development strategy: De-risked from a technical, regulatory, offtake and funding perspective
• World class deposit: High-grade, long-life asset with also benefits from very low levels of radionuclides
• Complete offtake solution: A binding take-or-pay offtake agreement with Shenghe for 100% of rare earth concentrate and 50% of any future downstream products
• Attractive mining jurisdiction: Tanzania is a well-established and rapidly improving mining jurisdiction
• Experienced board and management team: A well-rounded leadership team with a track record in funding and developing projects
• Exploration and development upside: The broader Ngualla deposit hosts a range of critical minerals including phosphate, niobium, and fluorspar
What are the top 3 key investor takeaways?
• Trades at a compelling valuation relative to other rare earth development companies
• Complete integrated solution in place including funding, development and offtake – the only rare earth development company that has a full offtake solution
• Highly supportive partner, Shenghe Resources that has deep experience in the rare earth sector (20+ years). Shenghe played a key role in the restart of MP Material’s Mountain Pass Project including funding, offtake and technical support and still retains a ~7.7% interest in MP Materials