Don't Forget To
Rate This Article
   

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: DEFN; DFMTF; 35D

New Results Highlight Method for Greater REE Extraction
Research Report

Share on Stocktwits

Opting to use the acid bake process should improve the design and economics of the REE project for its owner, noted a Noble Capital Markets report.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) determined, via metallurgical testing, it can employ the acid bake process to produce rare earth elements (REEs) at its Wicheeda project, which could result in lower CAPEX and operating costs, reported Noble Capital Markets analyst Mark Reichman in a June 1 research note.

"The preliminary acid bake process results highlight the potential for an improved project design with enhanced project economics," Reichman wrote. "Most of the world's REEs are produced using the acid bake process."

The acid bake process is preferable to the gangue leach-caustic crack process, which was included in the preliminary economic assessment for Wicheeda, highlighted Reichman.

In comparison, the acid bake process requires less equipment and fewer steps and circuits, and it is more efficient, Reichman wrote. Testing showed it to effect "greater than 95% recovery of neodymium and praseodymium from flotation concentrate into a leach solution."

Since Defense Metals' hydrometallurgy program began late last year, about 20 tests have been conducted on several concentrate samples. The work, once finished, will "yield data to facilitate a detailed [project] design, including capital and operating cost estimates." This is expected in Q4/22.

Noble has an Outperform rating and a $0.70 per share target price on Defense Metals, the stock of which is currently trading at around $0.19 per share.


Want to be the first to know about interesting Critical Metals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Disclosures

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Defense Metals Corp. Click here for important disclosures about sponsor fees. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice, and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp, a company mentioned in this article.

Disclosures for Noble Capital Partners, Defense Metals Corp., June 1, 2022

All statements or opinions contained herein that include the words "we", "us", or "our" are solely the responsibility of Noble Capital Markets, Inc. ("Noble") and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.

Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgment. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company specific disclosures: The following disclosures relate to relationships between Noble and the company (the "Company") covered by the Noble Research Division and referred to in this research report.

The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) within the next 3 months. Noble is not a market maker in the Company.

Analyst Certification: All views expressed in this report accurately reflect my personal views about the subject securities or issuers. No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.




Want to read more about Critical Metals investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe