The Conversation (0)
- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Chariot Corporation
CC9:AU
BHP Group Ltd
BHP:AU
Red Metal Resources
RMES:CC
Black Swan Graphene
SWAN:CC
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Convertible Loan Agreement
October 25, 2023
Eclipse Metals Ltd (ASX: EPM) (Eclipse Metals, the Company or EPM) is pleased to advise it has entered into a convertible loan agreement with Oz Yellow Uranium Ltd (Oz Yellow) for A$300,000 (Convertible Note). The Company will use the proceeds from the convertible note for working capital purposes.
Executive Chairman Carl Popal said “We are pleased to secure the investment funding agreement with Oz Yellow Uranium and continue the commitment to jointly fast-track the proposed uranium asset spinout. This is a further testament of confidence as investors appreciate the value of the Company’s uranium assets. Prospects for the uranium market have improved remarkably during recent months and the spot price of uranium has reached a 15-year high. The Company’s 100% owned uranium portfolio in the NT is well positioned to take advantage of the rising trajectory in the uranium market to fast-track development of its NT assets.”
Key components of the Convertible Note financing are as follows:
- A$300,000 committed financing in the form of a Convertible Note that may be drawn down at Eclipse’s request.
- No interest is payable and no security is granted.
- In the event Oz Yellow completes the Heads of Agreement (refer ASX announcement 4 April 2022) prior to the repayment date then the aggregate amount outstanding owed will be repaid to the Oz Yellow in full by way of deduction of such amount from any completion payments (Automatic Repayment Event).
- The repayment date is 31 December 2023 or such later date as agreed between the parties (Repayment Date).
- The Convertible Note is convertible into EPM shares utilising the Company’s existing capacity under Listing Rule 7.1, in the following circumstances:
- Eclipse may at any time prior to the Repayment Date notify the Oz Yellow in writing of its intention to convert the whole or part of any outstanding monies into fully paid ordinary shares in EPM (Conversion Notice).
- If Eclipse provides a Conversion Notice under this clause, the relevant quantum of outstanding monies will convert at a conversion price equal to the higher of A$0.008 and a 20% discount to the volume-weighted average price of EPM Shares on the ASX for the 60 trading days on which trades for EPM Shares were recorded immediately prior to the date the EPM provides the Conversion Notice.
- If the Automatic Repayment Event does not occur prior to the Repayment Date and outstanding monies remain as at the Repayment Date, such outstanding monies will automatically convert into EPM Shares at a conversion price equal to the higher of A$0.008 and a 20% discount to the volume-weighted average price of EPM Shares on the ASX for the 60 trading days on which trades for EPM Shares were recorded immediately before the Repayment Date.
Click here for the full ASX Release
This article includes content from Eclipse Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EPM:AU
18 October
Australian Strategic's Dubbo Rare Earths Project Gets AU$5 Million Federal Government Grant
Australian Strategic Materials (ASX:ASM,OTC Pink:ASMMF) said it has been awarded AU$5 million under the Australian government’s International Partnerships in Critical Minerals (IPCM) Program.
IPCM is an AU$20 million program launched this year to “support early to mid-stage critical minerals projects that contribute to building end-to-end supply chains with Australia’s international partners in the critical minerals sector.”
Australian Strategic will use the money received to support work to identify potential lower-capital and shorter-implementation pathways to rare earths production at its Dubbo project in New South Wales.
The amount is in addition to a AU$6.5 million grant received by Australian Strategic from the government’s Critical Minerals Development Program last year. It was provided for the advancement of project design elements.
The company said the new funds recognise its strategic importance as a future producer of rare earths and critical minerals such as zirconium, niobium and hafnium, which are key to the defence industry.
Australian Strategic said that it will match the grant to further support activities at Dubbo.
“With this funding, we will be able to undertake important work to identify lower capital and shorter implementation pathways to unlock rare earth production at the Dubbo Project and ensure a focused completion of our final FEED,” said Australian Strategic Managing Director and CEO Rowena Smith, while thanking the Australian government for its support.
“Government support to refine rare earths is important for our sovereign capabilities and will help our trading partners meet their economic, national security and emission reduction commitments,” said Madeleine King, minister for resources and minister for Northern Australia, in a separate statement on Tuesday (October 15).
In March of this year, Australian Strategic also received a non-binding letter of interest from the Export-Import Bank of the US regarding up to US$600 million in debt funding to support the project’s construction.
Located approximately 400 kilometres northwest of Sydney, Dubbo is expected to deliver up to 1,000 local jobs during the construction period and approximately 270 jobs once operational.
Australian Strategic is targeting a final investment decision for Dubbo within the first half of 2026.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
14 October
Appointment of TritonLake as Global Corporate and Financial Advisors to Drive Business Partnerships and Global Growth Footprint
ChemX Materials Limited (ASX:CMX) (ChemX or the Company), an Australian high purity critical materials company and 100%-owner of the HiPurA® patented process to produce High Purity Alumina (HPA) is pleased to advise it has appointed TritonLake to act as the Company’s Corporate Advisors.
HIGHLIGHTS
- ChemX Appoints TritonLake as Global Corporate Advisors
- ChemX proceeding with Pilot Plant Construction for HPA production at Scale
- International Focus for Joint Venture Offtake, Strategic Partnerships & Investors
ChemX is commercialising its unique HiPurA® technology producing HPA and other aluminous products from a chemical feedstock, independent of mine production, thereby potentially reducing project risk and approval lead times. Importantly, ChemX has the opportunity to co-locate future production facilities with offtake partners in key markets.
Under the agreement, ChemX will have access to TritonLake’s network of global partners and investors as it moves forward with its final phase of pilot plant construction and commissioning.
A detailed summary of the corporate advisory mandate is set out in Schedule 1.
TritonLake CEO Conor Smyth Commented: “It is a pleasure to be working with ChemX as it takes its patented HPA production process forward to realise its global potential. The attractiveness of a high purity alumina process to be deployed in key markets including USA, Europe and South-East Asia has the potential to integrate into supply chains for the next generation of technology and consumer applications across AI Semiconductors and Micro LEDs.”
TritonLake’s appointment comes at a key time for critical materials as the world seeks to harness the high value materials to drive the AI and energy revolution. HPA and Synthetic Sapphire serve a key purpose in providing chemical inertness in high value applications whether in Semiconductors, Micro LEDs or Optical devices.
Click here for the full ASX Release
This article includes content from ChemX Materials, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Keep reading...Show less
10 October
Results of General Meeting
In accordance with Listing Rule 3.13.2 and section 251AA of the Corporations Act, CuFe Ltd (ASX: CUF) (CuFe or the Company) provides the results of its General Meeting of Shareholders held at 2:00pm (WST) on 10 October 2024, as set out in the attached schedule. The Company advises that the resolution was passed and decided by way of a poll.
The Company confirms that receipt of shareholder approval of the transaction (as referred to in the ASX Announcement of 26 August 2024), satisfies a key condition precedent. The Company is working with the purchaser Newcam Minerals Pty Ltd to finalise the remaining conditions precedent. Completion is expected to occur this month.
This announcement is intended to lift the trading halt requested by the Company on 10 October 2024 in relation to its securities.
Announcement released with authority of the CuFe Board of Directors.
Click here for the full ASX Release
This article includes content from CUFE LTD, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Keep reading...Show less
09 October
CuFe Ltd (ASX: CUF) – Trading Halt
Description
The securities of CuFe Ltd (‘CUF’) will be placed in trading halt at the request of CUF, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 14 October 2024 or when the announcement is released to the market.
ASX Compliance
Click here for the full ASX Release
This article includes content from CUFE LTD, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Keep reading...Show less
08 October
WA1 Resources Reports "Excellent" Refining Testwork Results
WA1 Resources (ASX:WA1,OTC Pink:WAORF) revealed results from the initial refining testwork conducted at its 100 percent owned West Arunta niobium project on Monday (October 7).
Located approximately 490 kilometers south of Halls Creek in Western Australia, West Arunta hosts the significant Luni niobium deposit, which was discovered during the company’s first on-site drilling in 2022.
According to a July 2024 mineral resource estimate, Luni contains inferred resources of 200 million tonnes at 1.0 percent niobium pentoxide, including a higher grade resource of 53 million tonnes at 2.1 percent.
“In June we reported that beneficiation testwork successfully produced a high-grade niobium concentrate, primarily via flotation – the first stage in a conventional ferroniobium process flowsheet,” said WA1 Resources Managing Director Paul Savich in a press release.
The refining testwork, which used the niobium concentrate produced from the beneficiation in June, returned a refined concentrate grading 66.9 percent niobium pentoxide at 99.9 percent recovery. WA1 said that they consider this an excellent outcome.
The concentrate can now be used for upcoming conversion testwork, the third and final stage in the process, with the goal of producing ferroniobium end-product.
“In parallel, variability and optimisation testwork of the beneficiation stage is ongoing with the aim of demonstrating mineralisation can be beneficiated from a portion of the Luni deposit to support detailed mine planning and other evaluations,” Savich said. "This will support process flowsheet development and preliminary mass balances to support engineering assessments.”
In September, to protect the rights of the Kiwirrkurra people and itself, WA1 Resources signed a negotiation protocol with native title representative body Tjamu Tjamu.
The protocol was entered into to ensure the project “happens the right way and everyone has a good chance to share the benefits of the project.”
Proposed infrastructure for West Arunta includes an access road connecting Luni to the mid-state highway, which has already secured a miscellaneous licence application following the negotiation protocol and other requisite approvals.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
07 October
Rare Earths Stocks: 9 Biggest Companies in 2024
Rare earth elements (REEs) are crucial for technologies like smartphone cameras and defense systems.
A select few from the group of 17 are also vital to the expanding electric vehicle industry — neodymium and praseodymium are used in permanent magnet synchronous motors used in EV drive trains.
China's dominance in rare earth production and reserves has prompted countries like the US, Canada and Australia to boost their own mining and processing efforts to secure their supply chains. The pressure on these nations to establish strong supply chains is likely to grow when a US tariff on imports of Chinese rare earth magnets begins in 2026.
The 25 percent tariff, announced by the US government in May 2024, aims to both protect American industries from China's trade practices and support domestic production. One form of magnets the tariffs will affect is sintered neodymium-iron-boron (NdFeB) magnets, crucial for electric vehicle motors and wind turbines.
This marks the first time rare earth magnets are included in Section 301 tariffs, signaling a significant move in the US-China trade conflict. The initiative is part of broader efforts to bolster US energy and national security.
Meanwhile, the EU is also seeking to reduce its reliance on Chinese rare earths through a new law enacted in May, which aims to significantly boost domestic production of critical minerals, including rare earths, by 2030.
In early July, China's State Council introduced new regulations to tighten control over the country's rare earth resources and secure its supply chain. Taking effect on October 1, 2024, these new rules impose strict oversight on the mining, smelting and trading of rare earth elements. They also ban the export of technology for extracting and separating rare earths as well as for making rare earth magnets.
These recent escalations could be a boon to rare earth mineral and rare earth magnet stocks operating in the space outside of China. To help paint a better picture of the REE landscape, the Investing News Network has compiled a list of the biggest rare earths stocks by market cap on US, Canadian and Australian stock exchanges. Data was gathered on October 2, 2024, using TradingView’s stock screener.
US rare earths stocks
To circumvent Chinese tariffs, the US is striving to secure a stable domestic supply of REEs outside China. The US has vast rare earths reserves and is the second largest global REE producer thanks to its sole operating mine, Mountain Pass. However, it currently lacks sufficient processing facilities. American rare earth companies are working to address this imbalance, presenting investment opportunities for those looking to capitalize on the market's growth potential.
Learn more about MP Materials, Energy Fuels and NioCorp Developments, the three largest US rare earths stocks by market cap, below.
1. MP Materials (NYSE:MP)
Market cap: US$2.9 billion
Share price: US$17.54
MP Materials, the largest producer of rare earths outside China, focuses on high-purity separated neodymium and praseodymium (NdPr) oxide, heavy rare earths concentrate, lanthanum, and cerium oxides and carbonates.
The company went public in mid-2020 after acquiring the Mountain Pass mine in California, the only operational US-based rare earths mine and processing facility. In Q3 2023, MP Materials began producing separated NdPr, marking a significant milestone. The company plans to increase rare earth oxide production by 50 percent within four years.
In April, MP Materials was awarded US$58.5 million to support the construction of the first fully integrated rare earth magnet manufacturing facility in the US. This funding, part of the Section 48C Advanced Energy Project tax credit, was granted by the IRS and Treasury following a selection process that evaluated around 250 projects based on their technical and commercial viability, as well as their environmental and community impact.
Located in Fort Worth, Texas, the facility will produce the NdFeB magnets crucial for EVs, wind turbines and defense systems. The company is targeting commercial production by late 2025. MP Materials will source raw materials from its Mountain Pass mine, creating an end-to-end supply chain with integrated recycling.
During the second quarter of 2024, MP reported that NdPr production more than doubled quarter-over-quarter to 272 metric tons. The company expects that output will increase a further 50 percent in the third quarter.
2. Energy Fuels (NYSEAMERICAN:UUUU,TSX:EFR)
Market cap: US$914.91 million
Share price: US$5.59
Energy Fuels is a leading US uranium and rare earths company that operates key uranium production centers including the White Mesa mill in Utah and the Nichols Ranch and Alta Mesa projects in Wyoming and Texas.
The company finished the construction of Phase 1 REE separation infrastructure at White Mesa in early 2024, and in June it reported the successful commercial production of separated neodymium-praseodymium that meets the specifications required for REE-based alloy manufacturing.
According to the company, it believes it is the first US company in decades to achieve commercial-scale, on-spec rare earths separation from monazite. The Phase 1 REE separation circuit was completed under budget and is now operating at full capacity. Energy Fuels anticipates commercial production of 850 to 1,000 metric tons of NdPr per year, making it one of the largest outside China.
Additionally, the mill will produce a heavy REE concentrate for pilot-scale tests to potentially develop commercial dysprosium and terbium separation facilities in the future.
Energy Fuels has also made moves to secure sources of monazite sand to process at its White Mesa mill. In 2023, the company acquired the Bahia project in Brazil to potentially supply 3,000 to 10,000 MT of REE-bearing monazite sand annually.
In early June 2024, Energy Fuels executed a joint venture with Astron (ASX:ATR) for Astron's Donald rare earth and mineral sands project in Victoria, Australia, of which Energy Fuels now has the option to earn 49 percent. After garnering shareholder approval, the joint venture was finalised in late September. Donald is expected to begin production as early as 2026 and supply the White Mesa mill with 7,000 to 8,000 MT of monazite sand in rare earth concentrate annually in Phase 1, with plans to expand output in subsequent phases.
Adding to its rare earth roster, Energy Fuels announced plans to acquire Australian mineral sands company Base Resources (ASX:BSE) in September.
Commenting on the deal and the new assets, Energy Fuels CEO Mark Chalmers highlighted the rare earth portfolio potential. “The Toliara, Bahia and Donald projects are expected to become large-scale, world-class, and low-cost heavy mineral sand projects in the coming years, producing titanium, zirconium and rare earth minerals,” he said.
3. NioCorp Developments (NASDAQ:NB)
Market cap: US$77.32 million
Share price: US$2.00
NioCorp Developments is advancing its Elk Creek project in Nebraska, a leading critical minerals venture featuring North America's highest-grade niobium deposit under development, with significant scandium production capacity. An updated 2022 feasibility study highlighted extended mine life, improved ore grades and enhanced economics for niobium, scandium and titanium.
Recent metallurgical testing has demonstrated the ability to produce high-purity magnetic rare earth oxides at a recovery rate of 92 percent or higher. These results will inform an updated feasibility study, expected in 2024, incorporating rare earth elements into the project’s mineral reserves.
In April, the company delisted from the TSX due to significantly lower trading volumes than its NASDAQ listing.
A day later, NioCorp announced plans to explore the feasibility of integrating the recycling of permanent rare earth magnets into its proposed Elk Creek critical minerals project in Southeast Nebraska. An assessment will be undertaken to better understand the technical and commercial viability of recycling post-consumer neodymium-iron-boron magnets back into separated rare earth oxides, which can then be utilized in the production of new NdFeB magnets.
The initial phase of this investigation will involve bench-scale testing, with potential progression to demonstration-scale testing based on results. Notably, this initiative will be conducted independently of NioCorp's ongoing efforts to update its Elk Creek project's feasibility study.
In May, the company shared the results of a scoping study focused on using a Railveyor system to electrify the Elk Creek mine, which the study found could cut costs, shorten the timeline to full commercial production and lower the mine's carbon footprint. The system would deliver ore to processing facilities using a narrow-gauge light rail system.
In the preliminary fiscal year financial results released on August 26, NioCorp reported a net loss of US$11.395 million, or US$0.30 per share. The results for the period ending June 30, 2024, marked a year-over-year improvement compared to the previous fiscal year’s loss of US$40.08 million, or US$1.34 per share.
Canadian rare earths stocks
As part of Canada's Critical Minerals Strategy, the government has allocated C$3.8 billion in federal funding for opportunities across the critical minerals entire value chain, from exploration to recycling. Rare earth elements are among the minerals listed as critical.
Additionally, the government designated C$7.5 million in funding to support the establishment of a rare earths processing facility in Saskatoon, Saskatchewan. In mid-September, the Saskatchewan Research Council (SRC) announced that the facility reached commercial-scale production, making it the first in North America to achieve this milestone.
Currently, the facility produces 10 metric tons of neodymium-praseodymium metals per month. The SRC plans to increase monthly production to 40 MT by December, with an annual goal of 400 MT by early 2025.
Learn about Aclara Resources, Ucore Rare Metals and Mkango Resources, the three largest Canada-listed rare earths stocks by market cap, below.
1. Aclara Resources (TSX:ARA)
Market cap: C$83.2 million
Share price: C$0.49
Aclara Resources is advancing its Penco Module project in Chile, characterized by ionic clays abundant in heavy rare earths. Their objective is to generate rare earths concentrate utilizing an environmentally friendly extraction process. This approach aims to eliminate the need for a tailings facility, minimize water consumption and ensure the absence of radioactivity in the final product.
Additionally, the company discovered its Carina Module project in 2023, and in December disclosed an initial inferred resource for the project, encompassing approximately 168 million MT with a grade of 1,510 parts per million total rare earth oxides and 477 parts per million desorbable rare earth oxides.
Aclara successfully concluded its semi-industrial pilot plant program for the Penco Module in September 2023, yielding 107 kilograms of wet high-purity heavy rare earth concentrate from 120 MT of ionic clays. Full-scale production at the Penco Module is slated to commence in the second quarter of 2027.
On March 1, Aclara received its second patent for an innovative process to extract heavy rare earths from ionic clays in an environmentally friendly manner. The patent, granted in Chile and valid for 20 years, focuses on the circular mineral harvesting process and establishes a fully enclosed flowsheet. The company submitted a new environmental impact assessment for its Penco Module project in June that features an improved design addressing environmental and social concerns.
Aclara and Vacuumschmelze, also known as VAC, penned a memorandum of understanding in early July to jointly pursue a "mine-to-magnets" solution for ESG-compliant permanent magnets. The non-binding agreement aims to meet the rising demand for electric vehicles and clean technologies, addressing the limited and Asia-centric supply of rare earth minerals. The partnership seeks to develop a resilient, ESG-focused supply chain for these critical components.
In an August update, Aclara announced that the Environmental Impact Assessment (EIA) for its Penco Module project was moving to the next approval stage.
Later in the month Aclara signed a memorandum of understanding with the State of Goiás and Nova Roma to expedite the Carina Module project, emphasizing its importance for local development and Brazil's critical minerals supply. This was followed by the release of an updated preliminary economic assessment for the Carina Module featuring initial capital costs of US$593 million and sustaining capital costs of US$86 million.
2. Ucore Rare Metals (TSXV:UCU)
Market cap: C$37.11 million
Share price: C$0.60
Ucore Rare Metals is focused on the exploration and separation of rare earth elements in Canada and the US. The company owns the Bokan-Dotson Ridge rare earths project in Alaska and is developing a strategic metals complex for processing heavy and light rare earths in Louisiana. Ucore acquired an 80,800 square foot brownfield facility in Alexandria, Louisiana, for developing its first commercial REE processing facility in January.
In Canada, Ucore's Ontario-based RapidSX demonstration plant, operated by Kingston Process Metallurgy, was commissioned to evaluate the techno-economic advantages, scalability and commercial viability of the RapidSX technology platform for separating and producing REEs like praseodymium, neodymium, terbium and dysprosium. This initiative was supported by a US$4 million award from the US Department of Defense, granted to Ucore's subsidiary, Innovation Metals, to demonstrate the capabilities of the plant.
In late April, Ucore reported that it tested a mixed rare earth carbonate from Defense Metals' Wicheeda project and confirmed it was suitable for commercial-scale processing at Ucore's planned facilities. According to the release, "(Wicheeda) is a source of material that can become a fundamental economic and technical component to Ucore’s plan of developing multiple SMC’s across North America."
On July 9, Ucore announced the execution of a non-binding memorandum of understanding with Cyclic Materials that aims to to qualify Cyclic's recycled rare earth oxide product in Ucore's process. This will start with the use of initial trial quantities of Cyclic's supply to support Ucore's rare earth demonstration program at its RapidSX facility. Additionally, the agreement positions Cyclic Materials as a potential long-term source for Ucore's planned facilities in the US and Canada.
In mid-August Ucore and Meteoric Resources (ASX:MEI) signed a memorandum of understanding for Meteoric to supply 3,000 MT of total rare earth oxides from its Caldeira rare earth ionic clay project in Brazil to Ucore's Louisiana strategic metals complex.
A similar deal was established with Australia’s ABx Group (ASX:ABX) in early September. The agreement will see ABx supply Ucore with mixed rare earth carbonates from its ionic adsorption clay rare earth resource in Northern Tasmania.
3. Mkango Resources (TSXV:MKA)
Market cap: C$31.69 million
Share price: C$0.12
Mkango is positioning itself to be a leader in the production of recycled rare earth magnets, alloys and oxides via its 79.4 percent stake in Maginito with partner CoTec Holdings. Mkango also has mineral assets, including the advanced Songwe Hill rare earths project in Malawi.
Mkango’s mineral assets include the previously mentioned advanced Songwe Hill rare earths project in Malawi, which is targeting neodymium, praseodymium, dysprosium and terbium, and its Pulawy rare earths separation project in Poland. It also holds a diverse exploration portfolio in Malawi that host resources such as rare earths, uranium, tantalum and niobium.
At the end of July, Mkango's wholly owned subsidiaries and the government of Malawi signed a mining development agreement for the Songwe rare earth project confirming the fiscal terms for its development, including a 10 percent interest to Malawi's government and exemption from custom and excise duties imports and exports.
Maginito owns HyProMag, a firm focusing on rare earth magnet recycling at the Tyseley Energy Park in Birmingham, UK. HyProMag is also the licensee of the Hydrogen Processing of Magnet Scrap (HPMS) process, which demagnetizes and liberates rare earth magnets from scrap.
A pilot plant using a long-loop recycling process underpinned by the HPMS process was just commissioned in July, and commercial operations are anticipated to start in Q1 2025. Additionally, Maginito is expanding HyProMag’s recycling technology to the US through the joint venture HyProMag USA, with a feasibility study underway.
In early June, Mkango announced that HyProMag has entered a non-binding memorandum of understanding with Envipro Holdings, a Japanese recycling and materials trading company, to develop rare earth magnet recycling initiatives in Japan and the UK, including marketing and potentially development of its HyProMag technology in Japan, as well as scrap recycling trials in both countries.
In an August update, Mkango reported that HyProMag will receive 350,125 euros to develop its eco-friendly NeoLeach technology, which will further upgrade metals recovered with HPMS. The funding is part of the 8 million euro GREENE project by the European Commission’s Horizon Europe Programme, aiming to improve the resource efficiency and performance of rare earth permanent magnets.
In early October, Mkango and HyProMag secured 218,932 pounds in government grants for recycling strategies under the Innovate UK initiative to advance its recycling routes.
Australian rare earths stocks
Australia ranks among the globe's top rare earths producers and possesses the fifth largest reserves of these minerals. The nation is notable for hosting the largest supplier of rare earths outside of China, which also holds the highest market capitalization among Australian rare earths companies.
Learn more about Lynas Rare Earths, Iluka Resources and Arafura Resources, the three largest ASX-listed rare earths stocks focused stocks by market cap.
1. Lynas Rare Earths (ASX:LYC)
Market cap: AU$7.37 billion
Share price: AU$7.80
Lynas Rare Earths is the leading separated rare earths producer outside of China, with operations in Australia, Malaysia and the US. In Western Australia, Lynas operates the Mount Weld mine and concentrator and is ramping up processing at its Kalgoorlie rare earth processing facility.
In mid-2023, Lynas received AU$20 million from the Australian government's Modern Manufacturing Initiative. This funding supports the Apatite leach circuit project at Lynas’ Kalgoorlie facility. The company marked a pivotal moment in December when the Kalgoorlie facility achieved its first production milestone, signaling the transition from commissioning to full-scale operation.
Additionally, Lynas is working to establish a light rare earths processing facility and a heavy rare earths separation facility in Texas, US. These initiatives not only bolster Lynas's position but also strengthen the rare earths industry in both Australia and the US.
The company processes mined material at its separation facility in Malaysia. In the March 2024 quarter, Lynas reported strong production rates, including 1,724 metric tons of NdPr, following successful ramp-up efforts in Malaysia. Despite a challenging market with low NdPr prices averaging US$47 per kilogram, quarterly sales revenue reached AU$101.2 million.
In late June, Lynas announced plans to begin production of separated dysprosium and terbium products at its Malaysian operations in the 2025 calendar year.
In August, Lynas reported a 92 percent increase in mineral resources and a 63 percent rise in ore reserves at its Mount Weld site. Mineral resources have expanded from 55.4 million to 106.6 million MT at 4.12 percent total rare earth oxides, while ore reserves have grown from 19.7 million to 32 million MT at 6.44 percent.
The new estimates include significant increases in contained heavy rare earth elements and support a mine life of over 20 years at expanded production rates. Additionally, stored tailings were added to the ore reserves as the operations have the ability to reprocess them to recover additional rare earth minerals.
In its full year fiscal results 2024, Lynas reported an AU$226 million decline in net profit after tax. Company CEO Amanda Lacaze attributed the decrease to a challenging market, lower production tallies and upgrading downtime.
“Whilst NdPr production decreased by 8 percent, in a year when we undertook a major works program at Lynas Malaysia, total costs reduced by 17 percent in FY24 vs FY23, a reflection of the continued focus on capturing efficiencies across the business,” she wrote.
2. Iluka Resources (ASX:ILU)
Market cap: AU$2.91 billion
Share price: AU$6.82
Iluka Resources is advancing its Eneabba rare earths refinery in Western Australia with significant backing from the Australian government, which aims to bolster the country’s footprint in the global rare earths market by tapping into its abundant reserves. The company also owns zircon operations in Australia, including Jacinth-Ambrosia, the world's largest zircon mine.
Iluka secured an AU$1.25 billion non-recourse loan for Eneabba under the AU$2 billion Critical Minerals Facility administered by Export Finance Australia. This funding will support the development of a fully integrated refinery capable of producing both light and heavy separated rare earth oxides. The facility will process material from Iluka’s own feedstocks and third-party suppliers, with initial production expected to commence by 2025.
Additionally, Iluka is progressing its Wimmera project in Victoria, focusing on mining and beneficiation of fine-grained heavy mineral sands in the Murray Basin. This project aims to supply zircon and rare earths over the long term. A definitive feasibility study for Wimmera is scheduled for completion by the end of 2025.
In the company’s Q2 quarterly results, Iluka noted that Q2 activity at Eneabba included the "progression of major engineering packages, conclusion of camp accommodation works and preparation for commencing the next phase of site works."
On August 21, Iluka released its half year results, which included a AU$106 million revenue decrease compared to the first half of 2023. The company pointed to global macroeconomics, operational and market discipline and capital investments for the reduction.
3. Arafura Resources (ASX:ARU)
Market cap: AU$418.93 million
Share price: AU$0.17
Arafura Resources, an Australian rare earths firm, has secured government funding to advance its Nolans rare earths project in the Northern Territory. Arafura is currently working towards a final investment decision for Nolans, which is shovel ready.
Nolans is envisioned as a vertically integrated operation with on-site processing facilities. A 2022 mine report updates Nolans' expected lifespan to 38 years, targeting an annual production capacity of 4,440 MT of NdPr concentrate. The project's definitive feasibility study highlights significant concentrations of neodymium and praseodymium, alongside all other rare earths in varying quantities.
Arafura has inked a binding offtake agreements with Hyundai Motors (KRX:005380), Kia (KRX:000270), and Siemens Gamesa Renewable Energy. Additionally, the company has a non-binding memorandum of understanding with General Electric Company's (NASDAQ:GE) GE Renewable Energy to collaborate on establishing sustainable rare earths supply chains.
In its update for the June quarter, Arafura noted that it had secured conditional approval for over US$1 billion in debt funding for the Nolans project. With safety preparations underway, Arafura is nearing a final investment decision and is set to begin construction once financing is finalized.
In a late August press release, Arafura announced the signing of a memorandum of understanding with Canada’s Saskatchewan Research Council (SRC) to process rare earths from Arafura’s Nolans project into dysprosium and terbium oxides at SRC’s facility in Canada. The collaboration aims to support global supply chain diversification for energy transition technologies.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and Aclara Resources are clients of the Investing News Network. This article is not paid-for content.
Keep reading...Show less
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.