Harena Rare Earths shares jumped on Monday after announcing a pre-feasibility study (PFS) for its Ampasindava rare earth project in Madagascar, confirming strong technical and economic viability for the ionic clay deposit.
Harena Rare Earths, formerly known as Citius Resources, released the PFS after securing 100% ownership of the project last year.
The PFS outlines a 20-year heap leach operation producing approximately 71,000 tonnes of total rare earth oxide, with annual production of 4,000 tonnes TREO, including 1,700 tonnes of critical magnetic rare earth oxides (NdPr + DyTb).
The study, compiled with support from global engineering group SGS, estimates pre-production capital costs of $142 million, including a 25% allowance for EPCM and funding costs. The project is designed for a plant throughput of 5 million tonnes per annum at an average grade of 1,500 ppm TREO.
Using long-term analyst pricing, the project demonstrates robust economics with a pre-tax NPV10 of $343.7 million and an internal rate of return (IRR) of 34%.
Post-tax NPV10 stands at $249.6 million with a 30% IRR and four-year payback period. Life-of-mine free cashflow is projected at $1.0 billion post-tax.
These are all very attractive numbers, and Harena shares reacted accordingly, rising 20% on Monday.
Under current consensus pricing scenarios, the financial metrics improve significantly, with pre-tax NPV10 reaching $616.1 million and undiscounted life-of-mine free cashflow of $2.6 billion post-tax.
“The completion of the PFS represents a significant step forward for Harena and the Ampasindava Project. With significant previous investment in resource development, process testwork and environmental programs, we have an excellent understanding of the Ampasindava Project where we can now further optimise the asset as we move into the final piloting and studies phase,” said Allan Mulligan, Executive Technical Director of Haren.
“The Ampasindava Project hosts a world-class scale ionic absorption rare earths mineralisation, particularly amenable to low cost and high yield recoveries. The sustainable and rapid remediation heap leach extraction model will serve to enhance the local, regional and national economy with no lasting impacts on the environment.
“Our confidence in the results of the PFS and the underlying PFS process more broadly is based on the enormous previous works and current understanding of the orebody, and the inclusion of the Proof-of-Concept plant in 2026 will allow a smooth and organised mobilisation into construction with reduced start up risk.”