Peak Rare Earths

Financials:

Primary ticker: ASX:PEK
Stage of development: Development
Primary minerals: Rare Earths
Project to promote: Integrated Ngualla – Teesside Rare Earth Project
Project location: Tanzania & United Kingdom
Website: peakrareearths.com

Peak Resources is an ASX listed rare earth focused company. It is positioned to become one of the world’s lowest cost and fully integrated rare earth producers via the development of the (1.) Ngualla Rare Earth Project in Tanzania; and (2.) the Teesside Refinery in the United Kingdom.

The Ngualla Project contains one of the highest grade undeveloped NdPr Oxide projects in the world and has a 26-year Life-of-Mine supported by JORC Compliant Ore Reserves. It benefits from a bastnaesite mineralisation that is low in acid consuming elements and in radionuclides (such as thorium and uranium).

The Teesside Refinery will be located in the Tees Valley and will process concentrate from the Ngualla Project to produce NdPr Oxide and other separated rare earth products that are critical for Electric Vehicles and renewable energy technologies. The Tees Valley is an established industrial and chemical processing zone, benefits from “plug and play” infrastructure and utilities and is favourably positioned with respect to European and Asian markets. Importantly the site is also located within the Teesside designated Freeport area.

A Bankable Feasibility Study (BFS) was completed on the integrated Ngualla-Teesside projects in 2017 and was backed by extensive pilot plant testwork, detailed engineering and design and JORC 2012 Compliant Ore Reserves and Mineral Resources.

Following Tanzanian Cabinet approval of a Special Mining Licence application in July 2021, Peak has commissioned a BFS Update and is progressing key commercial and technical workstreams ahead of a targeted Final Investment Decision in late 2022.

Cash: AUD$12M
Debt: NIL


Major shareholders:
Shenghe Resources 19.9%
Management ownership – 1%

Management Profile

Bardin Davis – Managing Director
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.

What is your rationale for taking part 121 Mining Investment?

Connecting with investors seeking long-term exposure to world-class critical minerals

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

Recent developments:
* Progressing finalisation of a Framework Agreement with the Tanzanian Government
* Strong momentum on offtake negotiations
* BFS Update remains on track to be completed mid-2022
* Change of name (from Peak Resources to Peak Rare Earths) and share consolidation (1-for-10)

What are your key goals in 3 months, 6 months, 12 months?

3 Months:

* Execution of a Framework Agreement with the Tanzanian Government
* Announcement of offtake MOUs
* Finalisation of BFS Update

6 Months:

* Commencement of FEED
* Selection EPC/EPCM
* Commencement of site preparations & early works
* Execution of Binding Offtake / Supply Agreements

12 Months:

* Final Investment Decision
* Financial Close on Project Financing
* 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 – finalising a Framework Agreement with the Tanzanian Government
2. Marketing – progressing offtake MOU’s with Japanese, Korean and European end users
3. Funding – broad engagement with Export Credit Agencies, Development Banks and Commercial Banks

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

1. Compelling outlook for Rare Earths / NdPr Oxide
2. World-class high grade deposit
3. Vertically integrated business model
4. “Plug & Play” UK refinery solution
5. De-risked execution strategy (completed BFS / extensive pilot plant testwork)
6. Compelling value proposition
7. Experienced Board & Management Team

What are the top 3 key investor takeaways?

1. Compelling rare earth outlook supported by decarbonisation thematic
2. World-class and high-grade project
3. Trading at substantial discount to peers