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An Australian Company setting itself up to become a rare earth minerals leader

March 17, 2021

An Australian Company setting itself up to become a rare earth minerals leader

Australia could soon steal the rare earth minerals crown from leading producer China, courtesy of pre-IPO miner VHM Limited.

Australia could soon steal the rare earth minerals crown from leading producer China, courtesy of pre-IPO miner VHM Limited.

The Company is looking to develop its globally-significant projects across Victoria, and begin producing high-grade rare earth and zircon material from 2023 to meet surging global demand.

With the global supply of fossil fuels set to be depleted within the next 60 years and leading global economies including the US, EU, UK, and China all looking to drastically cut carbon emissions, rare earth elements have become a hotly discussed topic.

These elements – notably Neodymium, Praseodymium, Dysprosium and Terbium – are critical components of modern electric vehicle batteries and motors, and wind turbines.

They are not commonly found in minable concentrations in the earth’s crust, and 90% of current global production is controlled by China.

Analysts forecast the annual Neodymium and Praseodymium supply shortfall to reach 16,000 tonnes by 2030, while the annual shortfall in Dysprosium is tipped to hit 1,850 tonne shortfall over the same period.

As a result, the market for these crucial commodities is forecast to grow at a compound annual rate of 10.4% in the next five years to reach USD $20.6 billion by 2025. 

The Australian government has noted this opportunity, and pledged $1.3 billion in grant money to relevant projects as it looks to increase the country’s processing capacity for rare earths and other critical minerals.

 

Join VHM’s Managing Director Graham Howard on Tuesday 23 March at 12pm AEDT in a live online investor briefing for sophisticated and professional investors where he’ll discuss the pre-IPO opportunity to invest in a company that aims to build a globally significant rare earth and critical mineral project. Click here to book your spot.

 

The Company’s 6,300km of near-contiguous Victorian tenements host a number of major project sites with potential for standalone development, including the flagship Goschen Project with an indicated and inferred resource inventory of 1.1 billion tonnes of zircon, rutile, and rare earth elements.

This includes Mineral Resource estimates (including: meas + ind+ inf + et) up to 16 million tonnes of in-situ Zircon (roughly equivalent to the entire global holdings outlined in Iluka Resources’ mineral resource statement) and between 1.7 and 3.5 million tonnes of in-situ total rare earth oxide (TREO).

That will match or exceed Lynas Rare Earths’ 3 million tonnes TREO  – with further upside potential from multiple identified exploration targets.

The Company has been successful in converting Mineral Resource to Ore Reserves that underpin a project development plan commencing with a low-capex long-life operation.

Much of the material extracted from the Goschen Project can be extracted from the site and proceeds with very little capital expenditure due to its soft rock composition – there is no crushing or grinding required.

The Goschen Project’s softrock material has high grades of both zircon and rare earth minerals. The Company’s starter project contains higher grades of zircon (just under 30%) which positions this as one of the highest-grade undeveloped projects in the world.

On the rare earths front, the Goschen Project’s Neodymium and Praseodymium material has a grade of roughly 20% – directly comparable to Lynas Rare Earths’ grades. 

However the two businesses differ greatly in their Dysprosium and Terbium grades, where Lynas delivers below 1% and VHM between 3% and 3.5%.

The Company is focused on going to IPO in H2 2021 at which time the Company will be issuing a prospectus for that purpose.

The company is helmed by a board with deep experience in mining and industry, with strong connections to government departments and a proven track record.

The business is led by Managing Director Graham Howard, a 35-year industry veteran who has worked for the likes of Newcrest, Mount Magnet South, Aecom, and Aberfoyle Resources.

He is supported by Chair, Tim Lehany (previously MD and CEO of St Barbara and Executive General Manager Operations for Newcrest) and the Executive Officer of AREM, Ian Irving (CEO of Naval Shipbuilding Institute and former CEO of Northrop Grumman Australia).

VHM enjoys a quality shareholder base of over 230 shareholders including multiple resource industry heavyweights, and many of the shareholders have a deep resource industry background (both as practitioners and investors).

All Directors are among the business’ 230 existing shareholders and have significant skin in the game.

The tenements are located in Victoria, Australia, in an infrastructure-rich area which provides VHM easy access to port-loading facilities in Melbourne or Geelong, and have completed definitive feasibility study-level logistical studies and costings for Victorian and South Australian rail and road networks.

VHM has already secured letters of intent from water suppliers confirming they can meet demand for the project and are in negotiations with local solar and wind power providers to source their future energy needs.

 

Join the live investor briefing with Graham Howard on Tuesday 23 March at 12pm AEDT. Click here to book your spot. Or to request the offer documents please click here.

 

Any advice contained in the presentation is general only and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you.

Reach Markets are the advisors assisting with the management of this offer and may receive fees depending on whether an offer is taken up by investors. Past performance is not a reliable indicator of future performance.

Sources:

 


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