Project Economics

• NPV assumptions are based on ~5 400 tonnes of Monazite concentrate per annum production (base case), at a 20% Discount rate. The optimized techno-economic development plan will confirm optimized production volumes with potential to double the base case.
• The average monazite concentrate price utilized in the financial model over the life of mine is based on the current AMI indicators.
• Competent ground conditions with safe access to exposed faces in historic reef drives and stopes.
• Short payback period: <3 years for base case.
• Low capex
• Phases 2 and 3 can be funded from retained earnings or a hybrid including equity and/or trade/debt finance.
• High margin, low-cost operation due to high grade reserves, developed ore body and proven mining methods.
• High rare earth demand and price projections.

Insitu grade comparison

While there are other REE mines worldwide, SMM stands out due to its high-grade rare earth bearing monazite deposits, strategic location, and commitment to sustainability. We will leverage these strengths to establish a competitive edge in the market.

While there are other REE mines worldwide, SMM stands out due to its high-grade rare earth bearing monazite deposits, strategic location, and commitment to sustainability. We will leverage these strengths to establish a competitive edge in the market.

Based on the 2020 global production rate; at the initial planned production rate of 2 700 tonnes of REO’s per year, the Company could account for about 1.1% of global production.

As recorded in the Canadian NI 43-101 mineral resource and reserve estimates, SMM is unique in the global rare earth landscape because its average rare earth grade of 14.5% is the highest in the world.

SMM has a neodymium grade of 2.55% in the run of mine ore, which is higher than the total rare earth grades in most other rare earth deposits.

The high grades in the mine, in conjunction with the shallow mining depth and the ease of access to the mine and to the ore body, enables SMM to be one of the lowest cost producers of rare earths in the world.

SMM will mine and process about 12 tonnes of ore, including dilution, to produce one tonne of rare earths; other mines with a grade of two percent must mine and process at least fifty tonnes of ore to produce one tonne of rare earths.

The figure below shows the economic values of various competitor deposits. The position of SMM as the deposit with the highest value of contained rare earths per tonne of ore is clearly shown.

On average, each tonne of ore at SMM contains 144 kilograms of rare earths with a market value of about USD 7 187.04 at the present weighted average basket price of about USD 49.91 per kilogram.