(Alliance News) - Altona Rare Earths PLC on Wednesday said the results of the scoping study for its Monte Muambe rare earths project in northwestern Mozambique were positive and indicated the project's potential.
The mining exploration company focused on the evaluation, acquisition and development of projects in Africa said the results showed "an encouraging initial validation".
Altona Rare Earths said positive highlights included a post-tax net present value of USD283.3 million for Monte Muambe and a post-tax internal rate of return of 25%, alongside a projected payback from first production of 2.5 years.
The scoping study also indicated an average forecasted yearly production of 15,000 tonnes of mixed rare earth carbonate at an average price of USD13,558.40 per tonne and an 18-year life of mine.
"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 [rare earth elements] producers in Africa. It provides, together with the mineral resource estimate, a solid foundation for the project's subsequent progression," said Chief Executive Officer Cedric Simonet.
"As the project moves into its [prefeasibility study] 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."
Shares in Altona Rare Earths were down 6.7% to 3.50 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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