Published on Friday April 22 2011 (AEST)-Australia
James Kenny, Director and CEO for Frontier Rare Earths Limited (TSX: FRO)
(TSX: FRO.WT), a mineral exploration and development exclusively focused on the development of rare earths projects in Southern Africa, discusses the challenges innate in placing effective market valuations on REE resource companies.
Discussing the 43-101 process, coining 'The Big 5' (Neodymium, Praseodymium, Europium, Terbium, and Dysprosium) he makes a case for why investors need to pay particular attention to the Company's Project, Size of the Resource, Capital Expenditure and of course, the Metallurgy/Minerology.
Frontier's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa and is one of the largest undeveloped, advanced rare earth deposits worldwide.
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"Standardized benchmarking" as Kenny refers to it is very rational and many of us have our own system of valuation based on similar theory.
ReplyDeleteGreat piece, good watch. Thanks for posting.