Key facts about American Rare Earths (ASX: $ARR) announcement

American Rare Earths (ASX: $ARR) has released the results of the 'Halleck Creek Scoping Study Technical Report' compiled by Stantec Consulting Services Inc. The study confirms the low-cost and scalable nature of the rare earth elements (REE) project located in Wyoming, USA. Under the base case 3Mtpa operating scenario, the scoping study outlines NPV8 of US$673.9 and NPV10 of US$505 (pre-tax) at Halleck Creek, equating to an IRR of 22.5% and payback period of 2.9 years with total initial capex of US$456.1m (inc. US$76.0m contingency).

Executive commentary on the results

American Rare Earths CEO, Donald Swartz, expressed his satisfaction with the study results, highlighting the potential of Halleck Creek to be the next world-class REE project. He emphasized the project's compelling features, including its simplicity, low-operating expenses, modest initial capital expenditures, and scalability over time. Swartz also noted the project's ability to decouple Western supply chains from Chinese oligopolies, offering transparent pricing, reliable supply, and the opportunity for the U.S. to REEshore the industry.

Summary of the announcement and outlook

The scoping study by American Rare Earths (ASX: $ARR) has confirmed the low-cost and scalable nature of the Halleck Creek rare earth elements (REE) project in Wyoming, USA. The study outlines an NPV8 of US$673.9 and NPV10 of US$505 (pre-tax), with an IRR of 22.5% and payback period of 2.9 years. The project's favorable geology, coupled with low operating costs and a 10X upgrade in grade, positions it as a compelling opportunity. The company aims to advance the project to the next phase of development, leveraging the potential to decouple Western supply chains from Chinese oligopolies and contribute to the U.S.'s REEshore industry.