Developing a world-class rare earth deposit in South Africa
Developing a world-class rare earth deposit in South Africa
Developing a world-class rare earth deposit in South Africa
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Equivalent Grade-The Best Metric for Compar<strong>in</strong>g Rare Earth Projects<br />
Comparisons of <strong>rare</strong> <strong>earth</strong> projects based on TREO and HREO can be mislead<strong>in</strong>g<br />
Some LREOs are low value, but some are high value, and have high demand growth<br />
(Neodymium and Praesodymium)<br />
Some HREOs are high value, but many are low value (Gadol<strong>in</strong>ium) or are produced <strong>in</strong><br />
small quantities to special order, so do not have a regular market price (Ho, Er, Th, Yb &<br />
Lu)<br />
Equivalent grade is a better metric<br />
Allows comparisons to be made between multi-commodity <strong>deposit</strong>s conta<strong>in</strong><strong>in</strong>g different<br />
distributions of m<strong>in</strong>erals with different values by convert<strong>in</strong>g <strong>in</strong>dividual m<strong>in</strong>eral grades <strong>in</strong>to a<br />
s<strong>in</strong>gle,dom<strong>in</strong>ant m<strong>in</strong>eral grade<br />
Provides for relative rank<strong>in</strong>g of projects<br />
„Metal equivalent‟ widely used and common <strong>in</strong> other multi-commodity <strong>deposit</strong> environments<br />
Neodymium (Nd) is proposed as an appropriate REO for which to calculate equivalent<br />
grade as, us<strong>in</strong>g three year average pric<strong>in</strong>g data, is the largest or second largest revenue<br />
contributor <strong>in</strong> the majority of Frontier‟s peer group<br />
Is a direct proxy for <strong>in</strong> situ revenue per tonne<br />
Approach endorsed by Ontario Securities Commission<br />
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