Namibia Rare Earths Inc.

Namibia Rare Earths Inc. is a Canadian public company focused on the accelerated development of its 100%-held Lofdal rare earth project in Namibia. Lofdal is an early-stage, district-scale exploration project with widespread rare earth mineralization. The property has demonstrated a potential for the discovery of multiple rare earth deposits, including deposits that are exceptionally enriched with heavy rare earths. The company has allocated 22,500m of diamond drilling towards the delineation of a mineral resource and is well funded to carry out its strategic development program.

Expert Comments:

"I am watching Namibia Rare Earths Inc. The company has published a PEA on the Lofdal Area 4 deposit. It is a smaller-scale mining plant, and it produces 95% HREEs. Namibia Rare Earths needs to conduct PFS quality flowsheet work for which it would like to attract a partner that also has access to a heavy rare earths separation facility, for which the only non-Chinese candidate is the Solvay Rhodia facility in France. I like Namibia Rare Earths because it has sufficient money in the treasury to maintain the project. It does not have sufficient money to bring it to feasibility or develop it, but a partner looking for supply security could make it possible for Namibia to explore the Lofdal carbonatite complex further. It has potential for other minerals such as niobium, and could host additional HREE-enriched zones. That project could emerge as a long-term supply of HREEs." read more >

"Namibia Rare Earths Inc.'s Lofdal is located in Namibia. The company announced the results of a PEA on Lofdal in late 2014. It proposes an initial 7.3 year mine life producing approximately 1,500 tonnes of REE oxides per year, of which 94% will be HREE oxides—an extremely high proportion of heavy rare earth content. The PEA proposes production of a mixed REE concentrate in Namibia and further toll separation by a third party overseas, which eliminates a lot of technical risk for the project. It also has a low initial capital requirement, under $150M. Namibia Rare Earths also incorporated a toll-separation cost into its cash cost structure for the Lofdal PEA, which is a transparent and responsible practice. . .having the right mix of rare earths in the project basket, whether it is HREEs or light REEs, is only important if they can be produced at the right price. Other factors in favor of HREE projects, like Lofdal, are the relatively low preproduction capital requirements, which in most cases can likely be funded by one or two major investors. You don't need a baker's dozen of different companies with investment capital; you can cover the bill with one or two. . .Lofdal can likely be fast tracked given that it's located in mining-friendly Namibia and the preproduction capital requirements to develop the project are relatively low. But there are no risk-free projects in the rare earth industry. The future balance of the yttrium market, of which Lofdal is heavily endowed, hinges largely on China's continued ability to reduce illegal production in the nation's south going forward. Ongoing consolidation of China's rare earth industry will help enable that reduction but over the long term the proof will be in the pudding." read more >

"Namibia Rare Earths Inc. recently published its first PEA for the Lofdal REE project in Namibia. I helped put together the market study for that report. Namibia Rare Earths' project have some of the highest percentages of HREEs. It is hosted in xenotime mineralization, which has relatively straightforward metallurgy. . .Lofdal has great rare earth distribution and simple mineralogy. It still needs some infrastructure but it has great potential. One thing I would look for Namibia Rare Earths to do is to eventually expand the size of the mineral resource." read more >

"The release of Namibia Rare Earths Inc.'s preliminary economic assessment for the Lofdal project was a very positive step forward. The major host mineral is xenotime, which has been proven to lend itself to commercial rare earth element (REE) production. The PEA gives us a baseline to measure Lofdal relative to other projects. At $162M, the capex is extremely manageable and, just as important, the value of the concentrate the company aims to produce is heavily slanted toward the most critical REEs, including dysprosium and terbium. Namibia Rare Earths is a good example of a critical metals story that slowly continues to derisk itself and impress in the process. When sentiment in the space turns, it will be well positioned." read more >

"In Africa, Namibia Rare Earths Inc. may be the lowest cost mine of all to bring to production." read more >

"One RE company that I continue to look at favorably is Namibia Rare Earths Inc. The company has just completed a PEA for its Lofdal project that envisions an open-pit 1,500 tpd mine that will produce a concentrate consisting mainly of heavy rare earths. The PEA reported an after-tax IRR of 43% and NPV of US$147M at 10%. The PEA does use FOB base case prices that are nearly double current levels, which would be a problem if 98% of the rare earths were not heavy rare earths representing over 99% of the recovered value. A key aspect of the PEA is the plan to have separation done by parties with that capacity outside of China. One of these is Solvay, whose subsidiary Rhodia has a facility in France with surplus separation capacity. The other would be Molycorp, which has potential to develop heavy rare earth separation capacity at its facility in Estonia. Namibia Rare Earth's goal is to find a partner to fund and develop the Lofdal mine, as well as separate the mixed oxides. Securing such a deal will be the next milestone because the junior would prefer to use its remaining $6M to explore for additional HREO enriched zones and other critical metal deposits within the Lofdal carbonatite complex in Namibia." read more >

More Expert Comments

Experts Commenting on This Company

Chris Berry, Founder – House Mountain Partners LLC.
Michael Berry, Writer Disruptive Discoveries Journal
Ryan Castilloux, Founding Director/Exploration Analyst – Adamas Intelligence
Gareth Hatch, Founding Principal – Technology Metals Research
Tom Hayes, Analyst – Edison Investment Research
John Kaiser, Editor and Publisher – Kaiser Research Online
Jack Lifton – Jack Lifton - Metals Consultant

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
Low capex opportunity for HREE outside of China
Simple mineralogy (xenotime) amenable to conventional separation technologies
Potential for multiple discoveries
Namibia Rare Earths Inc. Content