Making It to the Final Five

Written by Christopher Ecclestone

+ Recovering Rare Earth prices provided a fertile environment for reconsidering the sector’s attractions
+ Talaxis/Noble entered into the share register with a small financing in October and has since escalated involvement with a substantial stake being taken at the project level in exchange for funding the BFS and arranging project funding for the build
+ The travails of Peak Resources now place Mkango as the most advanced African project of substance
+ Mkango has one of the strongest group of institutional/core shareholders that we have seen in a REE explorer
+ BFS in the works with “right-sizing” options under active consideration
+ Deal with Metalysis provides first sign of vertical integration (and the search for higher margins) while creating a potential offtake client
+ The potential is there for the REE space to achieve a significant rerating once the investor universe realizes that the sub-space is joined at the hip with the EV revolution

- The capex is targeted at slightly over $200mn which will require significant funding being arranged by Talaxis/Noble
- Noble been experiencing travails in the marketplace since 2015 as a legacy of the long commodity slump
- The Rare Earth space is not out of the woods yet and is only as fragile, or as strong, as the reactivation in the broader mining markets


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