Peak Resources unearth the rewards from green energy demand

Peak Resources unearth the rewards from green energy demand

Date of Report: 27th Oct 2021
ASX: PEK

Price A$0.076

52 Week Range: A$0.031 - A$0.155

Market Cap: A$157.04 million

Sector: Materials

Every second week we invite a leading fund manager to present at The Insider: Meet the Fund Manager. Craig Scheef, from Technical Investing, selected Peak Resources as one of his three favourite stocks as the company digs into the global demand for green energy.

July 30, 2021

September 1, 2021

The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading fund managers. They share their approach to investing, favourite companies and their market view for the year ahead.

The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing. 

Green energy transformation is rapidly gaining momentum, with governments here and around the world pledging to cut carbon emissions.

Peak Resources is a rare earth company focusing on the production of key raw materials that are needed to power low carbon technologies, such as electric mobility, clean energy and automatisation/robotic technology.
Neodymium, a rare earth, is one such raw material that is used in the production of magnets for electric motors. The consumption of neodymium magnets is expected to grow significantly between 2020 and 2030 – displaying a CAGR of 9.7%.

Speaking to Reach Markets on The Insider: Meet the Fund Manager, Craig Scheef from Technical investing said: “Peak arguably has the best undeveloped rare earth deposit in the world.”

With the Electric Vehicle (EV) sector surging ahead in terms of demand and production numbers, EV manufacturers are on the hunt for materials that will fuel their growth and keep up with demand.

Currently, more than 90% of the world’s neodymium magnets come from China. However, Peak Resources Managing Director and CEO Bardin Davis confidently states that the company sits on “one of the world’s largest and highest-grade rare earth deposits” in Tanzania, which is heavily skewed to neodymium.

Mr Scheef believes this puts Peak in a position of strategic value: “If the world is going to move towards electric vehicles, European, Japanese and US car manufacturers don’t want to be solely beholden to China. So companies like Peak will get a lot of support to get their line up and operating.”

Click here to view more videos from Craig Scheef’s Meet the Fund Manager session, or click here to view the full The Insider: Meet the CEOs session.

The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.

Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.

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The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.