Frontier Rare Earths Ltd. is a mineral exploration and development company focused exclusively on the development of rare earths projects in southern Africa. The company's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape province of South Africa and is one of the largest undeveloped rare earth deposits worldwide.
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The Metals Report Interview with Luisa Moreno
TMR: Frontier Rare Earths Ltd. is reporting costs of about $13/kg. What gets them to that level?
Luisa Moreno: That includes separation of about 10 elements. About 7% of the deposit is estimated to have HREEs and the remaining is light. That is a pretty good cost level if it can achieve that. Frontier is targeting 20,000 tpa of total production. Although the HREEs only make about 7% of the deposit, because Frontier targets such a large output, it would be able to produce almost as much HREEs as Matamec Explorations Inc. and Ucore, which are smaller-scale projects targeting about 2,000–3,000 tpa. I have a buy rating on Frontier. . .it has a strong team and a good-sized monazite deposit. It's facing fewer challenges than others. Its cash position is strong. It has KORES as a partner. It's doing all the right things. Project financing will be an important step. If it can achieve that, it will be moving very close to positioning itself as a viable source of development. It could become a good source for some of these less common elements in the market.
The Metals Report Interview with Chris Berry
"Another REE company I am following is a neighbor of Great Western's, Frontier Rare Earths Ltd. We just met with company management at PDAC and the takeaway was that this is a REE company that the overall market is overlooking. Frontier is developing the Zandkopsdrift REE deposit in western South Africa. The company has $52M on its balance sheet and is funded through a bankable feasibility study. I don't know of too many other companies in this space that can make that same claim. From a strategic standpoint, Frontier has a definitive agreement with KORES, the entity run by the Korean government, with the mandate of establishing Korea's access to critical and strategic minerals. I have seen KORES in a number of deals, most recently in the lithium space. KORES has called development of Zandkopsdrift a 'strategic priority' and took a 10% interest in the project for $24M. I am not aware of another REE junior that has a deal like this in place that can lead to offtake agreements or additional financing when the decision to build a mine comes closer.
"A PEA has been completed on Zandkopsdrift and while the forecast capex here is higher than some of its competitors at over $900M, this includes its own separation plant, sulphuric acid plant, concentrator plant and associated infrastructure. The company tells me that the critical REOs (neodymium, europium, terbium, dysprosium and yttrium) will only account for roughly 20% of production volume, but will account for roughly 70% of revenues. This is what I mean when I said earlier you must understand how an REE company will generate revenue. Frontier is positioning itself well."
Henry Lazenby, Mining Weekly
"Frontier Rare Earths Ltd. said it believed the CA$23.8M deal with Korea Resources Corp. made it the only junior company in the rare earths sector to have signed and completed a definitive agreement with a significant strategic partner. . .the company said its cash balance was boosted to CA$52M by the transaction."
"We are initiating coverage of Frontier Rare Earths Ltd. with a Speculative Buy recommendation and target price of $1. It is one of the few rare earth elements companies with a joint venture partner. . .the company plans to refine individual rare earths, including some heavies. . .we expect Frontier to emerge as one of the frontrunners in the next 12–15 months."
The Critical Metals Report Interview with Matt Gibson
"Three things make Frontier Rare Earths Ltd. attractive. Compared to a lot of the other juniors, it has a much higher-grade deposit. Its mineralogy has a known processing method, so the company does not have to develop a flow sheet from scratch. Finally, it has a strong financial partner in KORES. . .I see the project coming into production in the 2016 timeframe."
Frontier Rare Earths Ltd. Content
about FRO in a MiningWeekly.com Article: Minerals Explorer Hopes to Promote Rare Earths Project (1/25/13)
to Visit FRO's Investor Center: Presentation, Fact Sheet and more.
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