Don Ranta Interview
Must read interview with Dr. Ranta here: https://is.gd/j6mdK
Salient bits:
What we used was basically a three-year trailing average for the prices. We were planning to produce concentrate so therefore we used concentrate prices. We did try and use individual rare earth oxide prices for our economics. The number that we came up with that we used in the scoping study was $5.51 per kg for rare earth concentrate.
Then our Case 2 was basically just a 25% increase assuming that price goes up 25%. We see a huge difference in the Internal Rate of Return (IRR). It goes from 40% at $5.51 to 60% at $6.89 per kg and that was the 25% increase.
But if we double the $5.50 lets say up to $11 per kg then the Net Present Value (NPV) goes up from $213MM at $5.50 to something over $800 million for an NPV at a 10% discount rate. So the project is robust.
RI: The latter prices are more realistic with what is happening and what its at today.
DR: The current price is $38 per kg. So even at $11 per kilo if we double it, it’s a 100% increase we can use in our scoping study. The IRR is probably going to be over 100 % at that rate.