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The company said use of a “lower price deck” still generated a net present value of US$612 million and an internal rate of return of 22% versus $633 million and 21% respectively in earlier feasibility work based on pricing 10-20% higher.
The result is achieved due to increased production rates – achieved at an additional capital cost of $9 million – that sees mine life reduced from 31 years to 26 years.
The capital cost of Ngualla is $365 million, with Peak describing it as the “best undeveloped rare earth deposit in the world”.
Peak has lodged a mining licence application and is on the project funding hunt.
Last month Peak raised $2.8 million from investors by issuing new shares at 4c, with the rights issue underway having the same pricing.
Shares in Peak were untraded at 4c early in the session, capitalising the company at $22 milllion.
