Greenland Minerals

Primary ticker: ASX:GGG
Stage of development: Development
Commodity: Rare earths, Uranium, Zinc
Project to promote: Kvanefjeld – the worlds most significant RE project
Project location: Greenland
Company presentation: Presentation 1 | Presentation 2

Live financials

Cash: AUD$8M
Debt: Nil

Major shareholders:
Shenghe Resources Holding Co Ltd– 10.5%
Quadrant Capital Inc – 6%
Mr Peter Chapel – 4%
Management Ownership – 4%

Greenland Minerals is the 100% owner and operator of the Kvanefjeld Rare Earth Project. Kvanefjeld is one of the most significant and advanced rare earth projects globally, and is the focus is substantial geopolitical, industrial, and investor interest. The project is backed by leading international rare earth specialists Shenghe Resources (key to restart of Mountain Pass). Near-term milestones involve approvals of environmental and social impact assessments. Kvanefjeld is positioned to be a globally significant producer of neodymium, praseodymium, dysprosium and terbium for a number of decades.

EUROZ Report in April 2020 EUROZ Report in November 2019

Management Profile

Dr John Mair, Managing Director & Chief Executive Officer

Dr Mair is an economic geologist with extensive international experience in the resources sector across a range of commodities/materials. He has extensive technical, corporate and managerial experience and has been Managing Director of Greenland Minerals since 2014. He has worked closely with the Greenland and Danish governments to establish a regulatory framework for the by-production or uranium from Greenland.

What is your rationale for attending 121 Mining Investment?

Greenland Minerals has an internationally diverse shareholder base. As the company progresses through key milestones in relation to impact assessment approvals, it is important to keep the market informed of the status of company activities and the outlook as we approach the development pipeline.

What recent news would you like to highlight to investors attending?

Approval of project reporting in relation to mineral resources and feasibility assessments by the Greenland Government. Timelines set for reviews of EIA reviews and subsequent permitting steps. Outcomes of optimised feasibility study that demonstrates Kvanefjeld can be developed as a globally significant producer of all commercially important rare earths, at the lowest end of the cost curve. Kvanefjeld has numerous uniquely advantageous features the define it’s status as a resources project of global significance.

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Finalise the Environmental Impact Assessment and all documentation that pertains to a Mining License.

6 Months:

Move smoothly through public consultation and complete pilot plant operations of the optimized flow sheet.

12 Months:
Mining license approved, detailed engineering work underway and nearing completion, off-take agreements progressing, downstream processing strategy defined, project finance strategy mapped defined.

What do you think makes your company such a compelling investment?

Kvanefjeld is unique and the most significant emerging rare earth project globally.

Analyst Insight – provided by Independent Investment Research

Greenland Minerals is an ASX-listed company that’s focused on developing various high-quality mineral projects in Greenland and is positioned at the forefront of the nation’s emerging minerals industry. The company aims to become one of the world’s largest and most cost-effective producers of specialty metals.

Since 2007, the company has focused on delivering a world-class production centre for specialty metals from the Ilimaussaq complex in south Greenland. The company’s flagship project is the Kvanefjeld multi‐element deposit – hosting rare earth elements, uranium and zinc. Kvanefjeld is the first of several large-scale deposits to be delineated – and is widely recognized as one of the world’s largest resources of rare earth elements, as well as containing substantial resources of uranium and zinc.

The project’s overall resource inventory comprises 1.01 billion tonnes containing 593 million pounds U3O8, 11.14 million tonnes TREO, 2.25 Mt zinc TREO (including 0.37 Mt heavy REO, 0.84 Mt yttrium oxide). The Kvanefjeld Project is forecast to be a globally significant producer of all commercially important rare earth elements – including neodymium, praseodymium, terbium and dysprosium – over an initial 37‐year mine life.

A pre‐feasibility study was finalised during 2012 and a comprehensive feasibility study was completed during May 2015. The studies demonstrate the potential for a large‐scale, long‐life, cost‐competitive, multi‐element mining operation. An exploitation (mining) license application for the initial development strategy was completed during 2015. The company is working closely with Greenland’s regulatory bodies on the processing of the mining license application and maintaining regular stakeholder updates.

During July 2019, the company provided an updated capital cost estimate for the Kvanefjeld Project, which had been reduced by 40% from US$832M (April 2016) to US$505M. The reduction in the capital cost estimate is the result of optimisation studies covering all elements of the project, from the flowsheet to civil construction. The updated capital cost of US$505M is transformational for the project, which now has the lowest capital intensity of emerging ASX‐listed rare earth projects.