NSR Calculation For A Canadian Rare Earth Company

Overview

Our client wished to expand their existing niobium mine to include processing their rare earths as a by-product. In order to secure investor, support they first needed to conduct a Net Smelter Return (NSR) calculation which provides insight into the value of their deposit.

Methodology

Core Consultants conducted an industry analysis of the rare earth market, carrying out both a commercial and technical due diligence into the cost of producing a rare earth oxide.

Our Recommendation

It was established that the high thorium content and relatively low grade ore rendered the project costly and we therefore recommended that the company does not proceed with the mine development.

Outcome

The company engaged Core Consultants in a follow up project. Further the company went onto producing its own in-house study, which was published, referencing Core Consultants’ findings.

Lara Smith

Lara is the CEO and founder of Core Consultants. She has been an analyst for over thirteen years and has focused on commodity markets for just over a decade. She began her career as a buy-side analyst at Foord Asset Management in Cape Town, before taking a Head of Research role at a mining corporate finance and investment firm.

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