2016
Annual Report
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Markets are aware of the increasing demand forecast for Lithium...
... but do they fully recognise that the preferred powertrain for electric and hybrid vehicles is a Rare Earth permanent magnet motor?
DRIVETRAIN: PERMANENT MAGNET RARE EARTH MOTOR
BATTERY SYSTEM: LITHIUM-ION
Electric and hybrid car technology is already here and on the brink
of mass market acceptance that will drive increased demand for Neodymium and Praseodymium.
Source: www.hyundai.com - For illustrative purposes only.
There are 75 new models
of electric and hybrid cars already in design, 90% of these contain Rare Earth permanent magnet motors.
Major global rare earth markets and processing centres
Headquarters, Washingston
Headquarters, London
Rare Earth Refinery
Europe
China
Japan
USA
South Korea
Thailand
Tanzania
Australia
Rare Earth Refining Markets & Centres
CONTENTS
NGUALLA PROJECT
Mine and multistage processing plant
Corporate Headquarters, Perth Western Australia
-
Chairman's Letter
-
Managing Director's Letter
-
Review of Operations
15 Directors' Report
-
Auditor's Independence Declaration
-
Independent Auditor's Report
-
Consolidated Statement of Comprehensive Income
-
Consolidated Statement of Financial Position
-
Consolidated Statement of Cash Flows
-
Consolidated Statement of Changes in Equity
-
Notes to Financial Statements
58 Directors' Declaration
-
Tenement Schedule
-
Additional Shareholder Information
61 Corporate Directory
61 Corporate Governance Statement
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The 2016 Peak achievements in numbers*
2016 was another great year of progress for Peak Resources materialising in the following results:
REDUCTION OF CAPEX
-US $37 million
from PFS (10% reduction from PFS).
REDUCTION OF OPEX
-US $21 million
per annum from PFS (18% reduction from PFS).
RESULTING IN A TOTAL CAPEX OF
US $330 million
including 25% ($63 million) contingency.
… AND TOTAL OPEX OF
US $97 million p.a.
for an annual production of 2,300t Nd/Pr oxide
+ 250t Mid + carbonate mix + 5,900t La/Ce carbonate.
WITH A MINE LIFE OF
31 years
from the Weathered Bastnaesite Zone alone.
… AND TOTAL RESOURCES OF
214.4 million tonnes
at 2.15% REO, for 4,620,000 tonnes of contained REO.
LOW COST MINING
Low 1.68 strip ratio
Mining rate of only 3.0Mt per year.
High grade of 5.48% REO for first 10 years.
… AND SIMPLER PROCESSING COSTS
95% mass reduction
during beneficiation to produce 27,900t of rare earth concentrate per annum at a grade of 45% REO.
REFINERY IN EUROPE
Less than 4 tonnes / hour
treatment rate using weak acid at
… AND STREAMLINED PRODUCTS
85% of value
is from the high growth magnet metals Neodymium and Praseodymium.
*See ASX Announcement "Ngualla Study delivers substantial Capex and Opex savings" of 16 March 2016 for details on capital and operating costs, mining inventory and rates and processing plants and ASX Announcement "Higher grade Resource for Ngualla nearly 1M tonnes REO" of 22 February 2016 for details of Mineral Resource estimate.
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