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Defense Metals - Robust Economics from Wicheeda Rare Earth Deposit PFS
PFSProvident Financial Services(PFS) Prnewswire·2025-02-18 08:01

Core Insights - The completion of the Pre-Feasibility Study (PFS) positions Defense Metals' Wicheeda Project as one of the most advanced undeveloped rare earth projects in North America or Europe [1][3] - The project demonstrates robust economics with a pre-tax NPV of US1.8billionandanIRRof24.61.8 billion and an IRR of 24.6%, alongside a 3.7-year after-tax payback period [1][10] - The Wicheeda Project is expected to produce a high-value Mixed Rare Earth Carbonate (MREC) product, enhancing its market resilience [2][5] Economic Highlights - Pre-tax NPV at 8% is US1.8 billion, while after-tax NPV is US992million[10][20]−Pre−taxIRRstandsat24.6992 million [10][20] - Pre-tax IRR stands at 24.6%, with an after-tax IRR of 18.9% [10][20] - Initial capital expenditure (CAPEX) is estimated at US1.4 billion, with an average operating cash cost of US37.42/kgNdPrO[10][22]ProductionandOperationalMetrics−Theprojectsupportsa15−yearLife−of−Mine(LOM)withanaverageannualproductionof31,900tonnesofTotalRareEarthOxide(TREO)inconcentrate[10][12]−ThebreakevenpriceforNdPrOisUS37.42/kg NdPrO [10][22] Production and Operational Metrics - The project supports a 15-year Life-of-Mine (LOM) with an average annual production of 31,900 tonnes of Total Rare Earth Oxide (TREO) in concentrate [10][12] - The breakeven price for NdPrO is US67.60/kg, while the operating cash breakeven price is US37.42/kg[1][10]−Theflotationplantisdesignedtoprocess5,000tonnesperday[10][12]MarketContext−Thedemandforneodymiumandpraseodymiumisdrivenbytheiressentialrolesinelectricvehicles,renewableenergy,andadvanceddefensetechnologies[5][15]−GlobalNdFeBmagnetconsumptiongrewby1337.42/kg [1][10] - The flotation plant is designed to process 5,000 tonnes per day [10][12] Market Context - The demand for neodymium and praseodymium is driven by their essential roles in electric vehicles, renewable energy, and advanced defense technologies [5][15] - Global NdFeB magnet consumption grew by 13% in 2023, with projections for continued growth [47][48] - The expected price for NdPr oxide is projected to rise from an average of US63/kg to between US$70-110/kg in the late 2020s [53][54] Infrastructure and Location Advantages - The Wicheeda Project is located in a Tier 1 mining jurisdiction with excellent access to infrastructure, including proximity to major power lines and transportation routes [10][36] - The site is approximately 80 km from Prince George, providing access to a skilled workforce and essential services [37][36] Environmental and Social Considerations - The company is committed to high environmental, social, and governance (ESG) standards, engaging with Indigenous rightsholders and stakeholders [59][60] - A Co-Design Agreement has been signed with the McLeod Lake Indian Band to integrate their perspectives into project planning [60]