Highlights:
- New "In Pit" mineral resource estimate of 41.6 Mt at 0.57% TREO with 51% HREO/TREO% and 1.70% Zr2O (Indicated), and 16.5 Mt at 0.64 % TREO with 49% HREO/TREO% and 1.70% Zr2O (Inferred);
- $1,464 million before-tax value (NPV at 10% discount rate) based on conservative basket price of US$51 per kg versus current China FOB basket price of US$184.85
- $5.3 Billion in revenue over the first 20 years
- 40 year mine life
- Initial capital expenditures of $290 million
- Before-tax payback period of 2.6 years
- Low start-up capital costs due to the excellent existing infrastructure at Norra Karr
- Proximal to operating ports with rapid access to the European market
70% of the projected economic value of the project (86% of TREO revenue) is expected to be derived from the production of Norra Karr's four rare earth elements: dysprosium, terbium, neodymium and yttrium. Here is a summary of the most critical rare earths based on my earlier article "Critical Materials For Clean Energy Economy":
As you can see this project has potential to supply the most critical of the rare earth elements. If you are interested to read more about this company I recommend reading analysis what was done before the release of PEA, but still capture the essentials of the project risks and reward potential: http://seekingalpha.com/article/436991-tasman-metals-projected-fundamentals-support-buying-before-the-norra-karr-pea
The author of this arcticle was long Tasman Metals at the time of writing. Tasman Metals should be considered as high risk investment. As with all this type of investments, one must prepare for potential loss of entire capital invested.
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