Cadence Minerals shares rise on Rare Earth project upgrade

Cadence Minerals shares rose in early trade on Monday following the 84% NPV increase of their Yangibana Rare Earth joint venture.

Cadence Minerals shares were 2.7% higher at the time of writing following the announcement on Monday.

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The operator of the Yangibana project, Hastings Technology Metals, said on Monday the post-tax NPV of their joint venture with Cadence Minerals had increased 84% to $A1,012 million.

The Life of Mine (LoM) pre-tax Free Operating Cashflow also enjoyed a sharp jump with a 71% increase to $A4,376 million.

The updated study now forecast production of 3,400tpa of NdPr Oxides which Hastings say is capable of supplying up to 8% of forecast global NdPr demand.

Cadence Minerals own 30% of three mining licenses and six exploration licenses at the Yangibana project in Australia.

“Today is a significant milestone for the Hastings team that is the result of an extensive amount of work carried out over a number of years. The updated project economics tell a story of a world-class rare earths project that will be capable not only of delivering up to 8% of global NdPr demand for a period of at least 15 years but generate significant, long-term value for all shareholders,” said Hastings Technology Metals’ Executive Chairman Charles Lew commented. 

“The Hastings team has done a tremendous job since 2017 to optimise and de-risk the Yangibana project, both technically and commercially, to make it an even more compelling investment proposition. Since its discovery in 2014, we were always confident in the quality of the rare earths resource endowment at Yangibana. As it turned out, the steady progress we have made over the years has converged with a strong global rare earths magnet market underpinned by the global energy transition and electric mobility. As the updated project economics demonstrate, Yangibana will be a financially and operationally robust, long-life project.”

In addition to the Yangibana project, Cadence Minerals also has investments in Iron Ore through the Amapa project and various Lithium assets.

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