A significant milestone for Altona Rare Earths
“…We have networks so we are in a good position to identify and acquire new projects. We are constantly reviewing opportunities with very strict criteria…”
When resource exploration and development company Altona Rare Earths released its scoping study for its Monte Muambe rare earth project in Mozambique, this milestone investor update did not go unnoticed by the market and shares responded positively.
The stock rose and it did so based on what chief executive Cédric Simonet stresses are conservative estimates. Regardless of whether the strategy is ‘under promise and over deliver,’ the numbers in the scoping study are substantial.
“So we’ve been very, very careful,” says Simonet who explains that the upside scenario, which uses just a base case of the price forecast then NPV8 with 8% discount rate is already over $400 million.”
Simonet describes the scoping study as a passport which gives permission for the pre-feasibiity study which will give greater viability to the project which is supported by Mozambique’s administration and where board members and strategic partners are domiciled.
Underpinning the results of the scoping study was the publication of the Competent Person’s Report which Simonet summarises. “The timeline if everything went well, will take us to the first production by the end of 2028, and then based on the current resource statements, the project will have a mine life of 18 years.”
2028 is five years from now, but as Cedric explains to Sarah Lowther in this video, his near term objectives are to drill deeper and “take the resource estimate to 20 million tonnes in measured and indicated category” as soon as 2024.
Longer term Altona has the ambition of being a multi project company with a portfolio of different projects. “I’m based in Africa,” says Cédric. “Another of the directors is based in South Africa. We have very good knowledge of the geology of the continent. We have networks so we are in a good position to identify and acquire new projects. We are constantly reviewing opportunities with very strict criteria and I’m expecting that within the next year or so we will have at least one other project.”
Read the Competent Person’s Report on Monte Muambe
Access #REE’s latest corporate presentation
Follow the company on ‘X’ – @AltonaRareEarth
The author was remunerated but does not hold shares in the company