Namibia Critical Metals Inc. (OTCMKTS:NMREF) announced the results of its Preliminary Economic Assessment (PEA) for the Lofdal Heavy Rare Earth Project “2B-4” in Namibia.
Market Stats
On Monday, NMREF stock gained 20.88% to $0.11 with more than 49K shares, compared to its average volume of 29K shares. The stock moved within a range of $0.1000 – 0.1150 after opening trading at $0.11.
Namibia Critical Metals Inc. Announces Positive Preliminary Economic Assessment for the significantly expanded Lofdal Heavy Rare Earth Project “2B-4” with $632.7 Million Pre-Tax NPV
The Lofdal deposit has the potential for significant production of dysprosium and terbium, two of the most valuable heavy rare earth elements. The project is being developed in a joint venture with Japan Oil, Gas and Metals National Corporation, targeting a long-term, sustainable supply of heavy rare earth to Japan.
The assessment aims at a substantially larger annual run-of-mine and plant throughput of 2 million tonnes per year and longer mine life than the historical PEA of 2014 by mining from two sub-deposits namely “Pit 2B” and “Pit 4”. Moreover, the processing flow sheet was simplified to a direct flotation of the run-of-mine material and expanded to include a hydrometallurgical unit producing a >98% mixed rare earth oxide as final product instead of xenotime concentrate.
The net present value is $632.7 Million USD (pre-tax) and $391 Million USD after-tax, while internal rate of return is 34% pre-tax and 28% after tax. Life of mine nominal cash flow is 34% pre-tax and 28% after tax. The price for Rare Earth Oxides used is – Dysprosium oxide USD$587/kg and Terbium oxide USD$2,493/kg. Lastly, the average basket price of USD$91/kg including third party separation costs.
Key Quote
“This is a major step forward in establishing Lofdal as a world-class heavy rare project and a globally significant potential supplier of Dysprosium and Terbium, the two most valuable rare earth metals. This strong economic analysis supports the continued rapid development of Lofdal and we are moving forward with the next steps including Pre-Feasibility Study of this extended mining operation over the next few months. This robust economic assessment is only on 50% of our existing resource and we believe there is still considerable upside in exploration. Currently, processing test work continues, and it is expected to further significantly improve recoveries in all processing steps which will allow the Lofdal project to become one of the major future sources of dysprosium and terbium globally.”
Traders Corner
NMREF stock is trading above the 50-Day and 200-Day Moving averages of $0.10 and $0.11 respectively. However, the stock is trading below the 200-Day moving average of $0.15.
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