Lindian Resources
Primary ticker: ASX:LIN
Stage of development: Development
Primary minerals: Rare Earths
Project to promote: Kangankunde Rare Earths Project
Project location: Malawi
Website: www.lindianresources.com.au
Lindian Resources (ASX:LIN) is an ASX listed Australian company (ASX Code: LIN) headquartered in Perth, with world class rare earths and bauxite assets critical to EVs and a range of other industries. Lindian’s Kangankunde Rare Earths Project, located in Malawi, South-East Africa is the largest and most strategically important rare earths deposit in the world. The Project contains high grade critical rare earth minerals neodymium (Nd) and praseodymium (Pr), which are form ultra-strong permanent magnets, much sought after for the electric vehicle and heavy wind turbine industries, helping the world transition to a greener economy and reducing our carbon footprint. Kangankunde will have the lowest cost of production of all rare earth operations globally, due to the to simple processing.
Cash: AUD$24,000,000
Debt: NIL
Major shareholders:
Kabunga Holdings (Chairman) – 11%
Bonacare – 11%
Ven Capital – 9%
Rohan Patnaik – 7%
BNP Paribus – 5%
Management Ownership – 0.5% (excludes Chairman and Bona Care)
Financials
Management Profile
Alistair Stephens – CEO
Mr. Stephens has a 36-year career in the mining industry in mine geology, resource development, mine engineering, process plant metallurgy, operations, commodity trading and finance. For the last 20 years he has been a CEO and Managing Director for several companies in the Rare Earths and Rare Metals sector, including 6 years as CEO and Managing Director of Arafura Resources. His 10 years’ experience in a Rare Metals project in Malawi has provided a critical insight into his current role as CEO with Lindian Resources Limited and the Kangankunde Rare Earths Project.
What is your rationale for taking part in 121 Mining Investment?
Profiling Lindian’s great investment opportinity and the role vital Kangankunde will have in the carbon abatement technologies
What recent news would you like to highlight to investors attending?
August – Maiden MRE, and metallurgical processing, Coming news : Exploration Potential
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Tendering Construction
6 Months:
Feasibility Study, Commencement of construction
12 Months:
Plant will be nearing completion of construction going toward commissioning
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
1. Power – looking at integrated sustainable power systems
2. Deisel – looking to eliminate Deisel usage on site
3. Processing skills in Malawi – start small and build capacity
4. Optimize processing – starting with small low-cost operation
What do you think makes your company such a compelling investment?
Lindian will commence construction of the Kangankunde Rare Eraths Project in Malawi in 2024. After commissioning and ramp up, the plant is designed for production rates ranging 10,000 to 12,000 tonne per annum total rare earths in mineral concentrate. At current market prices for concentrate, where market prices for rare earths are subdued, the project could generate US$65M to US$75M in revenue per annum but this could rise to in excess of US$120M per annum if rare earth prices return to the 2022 average when the price for NdPr was over US$100 per kilogram. The strong outlook for rare earths prices used in magnets for carbon abatement technologies, positions the Company to take advantage of future market dynamics.
What are the top 3 key investor takeaways?
1. A project with short-term low-risk earning capacity
2. A disruptor project that will challenge Chinese control of the REO supply chain
3. An enabling project to major downstream processing and product development
4. A vital project to materials for wind turbines and EV’s
5. Major expansion of centuries of production possible