Harena Rare Earths (LON:HREE) has completed its pre-feasibility study for its Ampasindava ionic clay rare earth project in Madagascar.
Chairman Ivan Murphy describes the publication of the PFS as a ‘landmark announcement’, which allows the company talk “very specifically about our cost of production, the huge scale and value of the project with over a billion in free cash flow post-tax and NPVs anywhere from 350 to even 600 million depending on what pricing you're using.”
In this interview investors will learn:
- What the PFS reveals about the economics of the project
- How the study paves the way for the company to secure a licence upgrade as Ampasindava moves closer to production
- Which other administrative and operational milestones Harena is now focusing on
- Why the Trump administration taking a $1.8 bnillion stake in USA Rare Earths is confirmation the US government is committed to supporting rare earth projects
- What steps Harena is taking to secure financing from the DFC - America's Development Finance InstitutionWhat the potential 4-5 year payback period for Ampasindava means for reliance on third party funding for the project and the company’s position on the use of debt financing
- How important the company’s appearance is at the Indaba African and global mining summit and what the desired outcome is from scheduled meetings
Reasons to Add HREE to your watchlist:
- Experienced management team
- Large-scale Ionic Clay REE project
- Offtake term sheet secured
- REE prices expected to rise fuelled by security of supply
- Base case post-tax NPV10 US$250m; IRR of 30%
- Attractive valuation as the only LSE-listed ionic clay REE project
Ivan Murphy, Chairman of Harena Rare Earths, was interviewed by Sarah Lowther for focusIR.
