Any idea on how to value the rare earths business?
This my attempt, please help me.
Undiscounted valuation:
- Resource = 89Mt
- Resource conversion loss = 20%
- Grade = 844ppm = 0.0844%
- Leachability = 68%
- Recovery = 98%
- Payability = US$43/kg MREC product
- AISC = AU$20/kg MREC product
- Exchange Rate = 0.70
- Capital Cost = $150M
Valuation = (89Mt x 80% x 1,000) x 0.0844% x 68% x 98% x (43/0.7-20) - $150M
= $1.5 Billion Free Cashflow (undiscounted)
Add to My Watchlist
What is My Watchlist?
