American Rare Earths Advances Halleck Creek Project Following Positive Scoping Study

American Rare Earths has disclosed the results of the Halleck Creek Scoping Study Technical Report, conducted by Stantec Consulting Services Inc. The project, located in Wyoming, USA, showcases promising economic potential and has been greenlit by the company's board for further development.

Key findings from the study include:

• Under a base case scenario of processing 3 million tonnes per annum (Mtpa), the project's net present value (NPV) stands at $673.9 million with an 8% discount rate and $505.1 million with a 10% discount rate, pre-tax. The internal rate of return (IRR) is calculated at 22.5%, with a payback period of 2.9 years following an initial capital expenditure of $456.1 million, including a $76.0 million contingency.
• The life-of-mine (LOM) average cost is reported at $38.38 per kg of NdPr equivalent, lower than the current cash cost of $50 per kg reported by China Northern Rare Earths, the largest integrated producer globally.
• The project's low operating costs are attributed to advantageous geology and mining economics, effective beneficiation and concentration processes, and high recovery/extraction rates through direct leaching, without the need for cracking.
• Initially set to mine 3.0 Mtpa, the study also explored a 6 Mtpa economic scenario, highlighting the project's scalability based on a significant resource base (540 million tonnes) that could support mining activities for 180 years at 3Mtpa and 90 years at 6Mtpa.
• The project plans to separate individual rare earth elements locally in Wyoming, avoiding the need to send concentrates overseas. The separation process is expected to yield products such as Neodymium (Nd)/Praseodymium (Pr) Oxide, Dysprosium Oxide (Dy), Terbium Oxide (Tb), and others, with Neodymium and Praseodymium oxides constituting 66% of revenue.
• The mining plan focuses on a compact footprint of approximately 400 acres on Wyoming state lands, ensuring a minimal environmental impact and facilitating permitting processes.
• The study incorporates a 10% production tax credit offered under the Advanced Manufacturing Production Tax Credit, part of the Inflation Reduction Act, which aims to encourage the domestic production of critical minerals, including rare earth elements.
• Price assumptions for Neodymium and Praseodymium were set at $91 per kg, reflecting consensus estimates from leading investment banks, with sensitivity analyses included in the study.