Despite releasing a reasonably upbeat scoping study for their Monte Muambe project yesterday, Altona Rare Earths shares sank on Thursday in very thin trade.
Altona Rare Earths shares last traded down 9.5% on the day.
The company released the scoping study for their Monte Muambe rare earth located in northwestern Mozambique project yesterday, providing an insight into the economics of the asset.
The evaluation gave the project an upside scenario NPV of $409.9m and capex requirements of $276.3m. Net revenues over the life of the mine are expected to be $3,193.1m.
Cedric Simonet, CEO of Altona, commented on the scoping study results:
“For Altona, the Monte Muambe Scoping Study is a significant milestone. This key deliverable serves as an affirmative initial validation of the Project’s economic viability, enabling the Company to establish its presence amongst other prospective REE producers in Africa. It provides, together with the Mineral Resource Estimate (“MRE”), a solid foundation for the Project’s subsequent progression.
“As the Project moves into its PFS stage, the Company will continue to work towards de-risking Monte Muambe and, with its local partners, to optimise its technical, commercial and financial parameters. We believe the timing for this achievement is impeccable, at a time where the global rare earths supply chain is diversifying away from China’s decades-long domination, and Western processing facilities are starting to come online.”
Altona Rare Earths shares have suffered from illiquidity and are down around 41% since relisting in London.