Peak Rare Earths
Financials:
Primary ticker: ASX:PEK
Stage of development: Exploration, Development
Primary mineral: Rare Earths
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 cost-competitive producer of high-grade bastnaesite concentrate which will be used in a range of low carbon technologies that power the green transformation.
The Ngualla Project benefits from one of the highest grade undeveloped rare earth deposits in the world and has an initial 24-year Life-of-Mine supported by JORC Compliant Ore Reserves. The Ngualla deposit contains bastnaesite mineralisation that is low in acid consuming elements and in radionuclides (such as thorium and uranium), resulting in lower overall processing and waste management costs. A two-stage flotation plant located at site will beneficiate Ngualla ore to produce a high-grade bastnaesite mineral concentrate.
Peak has completed a Bankable Feasibility Study Update for the Ngualla Project which is based on extensive pilot plant test work, detailed engineering and design and JORC 2012 Compliant JORC Reserves. With a binding offtake agreement and strategic EPC and funding MOU in place with its major shareholder and strategic partner Shenghe, Peak is positioned to become the next major player in the rare earth sector. Peak continues to progress key commercial and technical workstreams ahead of a targeted Final Investment Decision in April 2024.
Cash: AUD25.9m
Debt: NIL
Major Shareholders:
Shenghe Resources – 19.8%
Management ownership – 1%
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.
Matthew Horgan – Head of Corporate Development and Investor Relations
Matt holds over 12 years of experience within the mining industry. Matt was most recently at Azure Capital, a boutique investment bank based out of Perth, where Matt worked on several M&A transactions within the metals and mining space. Prior to his role at Azure, Matt spent over nine years at the aluminium company Alcoa where he worked across a number of roles spanning corporate development, strategy, market development and technical (chemical engineering). Prior to departing Alcoa, Matt was manager of global corporate development where he focused on business development initiatives across Southeast Asia.
What is your rationale for taking part 121 Mining Investment?
What recent news would you like to highlight to investors attending?
9 August – Executed Offtake Agreement and Strategic MOU with Shenghe
9 June – Commencement of Exploration Programme
1 May – Peak Receives Commitments to Complete $27.5m Placement
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
* Completion of FEED
6 Months:
* Finalisation of a complete funding and development agreement with Shenghe
* Final Investment Decision (FID) and commencement of construction
12 Months:
* Commencement of Construction
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
1. Perceptions regarding Tanzania – continue to communicate positive progress and transformation made under new President Hon. Samia Suluhu Hassan
2. Rare earths (not well understood by market) – continue to educate investors around market and communicate Peak’s key points of differentiation
3. Funding – finalise complete funding solution with strategic partner, Shenghe
What do you think makes your company such a compelling investment?
1. World-class high-grade deposit with low radionuclides
3. Sequenced development strategy – development of mine and beneficiation plant initially helps reduce upfront capital cost and technical complexity. Peak still retains optionality around downstream development in the future.
4. Highly experienced strategic partner and shareholder (Shenghe Resources)
5. Pathway to development including a binding offtake agreement in place with Shenghe for 100% of future product as well as an MOU for full funding and an EPC development solution
5. Experienced Board & Management Team
6. Significant exploration upside
7. All key permits and licences in place including a Special Mining Licence and Framework Agreement
What are the top 3 key investor takeaways?
1. World-class and high-grade project
2. Highly executable and fundable sequenced development strategy – which is being executed in partnership with Peak’s largest shareholder and strategic partner, Shenghe Resources. One of the only rare earth companies to have a full offtake solution in place
3. Full binding offtake solution place with a pathway to full funding and development of the Ngualla Project