Alkane Resources (AX:ALK) fourth quarter of CY17 going into Q1 CY18 should prove pivotal to the development of the Dubbo Project (DP), aided in no small part by a strong broad rebound in DP-relevant metal prices that account for c 80% of future annual revenue generation. We see the DP taking centre stage for Alkane, as it looks to develop its flagship project and secure commercial binding agreements over projected Phase 1 annual revenues (of c A$407m). The TGO has maintained course on cost and production guidance for the financial year, and a revised underground mine plan is due by end CY17.
Permanent rare earth magnets aid REE rebound
As lithium, graphite, cobalt and nickel become increasingly attractive as investments due to their use in electric vehicle (EV) manufacture, a myriad of other specialty metals should afford the same attention. These include rare earth metals associated with the production of permanent magnets used in motors and dynamos used in EVs, but also wind turbines and many other high-end green-tech applications. Praseodymium, neodymium and alloys thereof, as well as samarium, dysprosium and terbium are key rare-earth element (REE) magnet metals. Under our REE 2020 price assumptions (now below spot for these metals), magnet-REE revenues account for c 77% of total DP REE revenues, and c 29% of total DP revenues.
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