rare-earth elements - Hard Assets Rare Earths Investment Summit
rare-earth elements - Hard Assets Rare Earths Investment Summit
rare-earth elements - Hard Assets Rare Earths Investment Summit
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Scoping Study Highlights<br />
NYSE AMEX: REE<br />
TSX: RES<br />
Pricing basis - RE bulk concentrates<br />
Base Case<br />
3-year trailing average price<br />
($5.51/kg thru Aug 2010)<br />
Production rate 1,000 tpd<br />
Mine life 15 years (5M tons)<br />
Initial capital $87M<br />
Operating cost $213/ton<br />
LOM sustaining capital $88M<br />
REO recoveries to concentrates (23,700 tonnes conc.) 80%<br />
Annual tons REO in concentrates (10,300 tonnes REO) 11,400 tons<br />
Annual payable value of REO $143M<br />
Annual operating cash flow $50M<br />
Internal rate of return (IRR) 40%<br />
After tax LOM cash flow (undiscounted)<br />
After tax net present value (NPV)<br />
$598M<br />
10% discount rate $213M<br />
15% discount rate $131M<br />
Payback 3.1 years<br />
Concentrate prices: 3-year trend average $5.51/kg; 3.75-yr average $14.45/kg; current price of $38/kg<br />
Concentrates contain 42-45% REO (~43.5%)<br />
NI 43-101 Scoping Study (PEA) prepared by J.T. Boyd Company, November 2010<br />
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