Saxon on Tasman’s Prefeasibility Study and the REE-Awakening of the Rare Earth Market
March 24, 2015 — Mark Saxon, President, CEO and Director of Tasman Metals Ltd. (NYSE MKT: TAS | TSXV: TSM) in an interview with Tracy Weslosky, Publisher for InvestorIntel speaks about their recent +77% stock movement in February and their recent filing of NI 43-101 Technical Report on Pre-Feasibility Study for the Norra Kärr heavy rare earth element project in Sweden.
Tracy Weslosky: It has been. It’s nice to have you in-house. Why don’t we just kick off this discussion by saying congratulations — you’re stock price was up +77% (NYSE MKT: TAS) and +68% (TSXV: TSM) last month.
Mark Saxon: Yes. Certainly it’s been a very strong February. It’s nice to have a month like that behind us I suppose. The rare earth sector hasn’t seen really strong trading like that for a very long time.
Tracy Weslosky: Well, you know, what’s interesting to me is it seems to be the rare earth and critical materials right across the board. You have tungsten as well, which is technically a critical material.
Mark Saxon: I guess. We’ve seen the markets reawaken. Perhaps it’s the New Year and perhaps it’s the start of a new cycle. I’m not sure which one, but certainly for our stock in particular the stock was up on very strong volume, which obviously all goes well for the next few months.
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Tracy Weslosky: For all of the InvetorIntel audience that’s currently watching the news out of China, of course, there’s a huge demand or the prices have definitely been rising aggressively in both terbium and dysprosium, yes?
Mark Saxon: Yes, certainly they have. I guess the news from China is very positive for those metals and it’s about time. The prices have been falling for a while and then stabilizing and so we’ve now seen some lift in the prices. Certainly Tasman has a good opportunity to be a large supplier of both those metals.
Tracy Weslosky: Tasman, of course, has got two of the largest projects in heavy rare earths in the world and you just put out your prefeasibility study. Can you please give us an update?
Mark Saxon: So we just published the prefeasibility study Tracy for our Norra Kärr project, which is Tasman’s flagship. Obviously, as I think we’ve said, it’s in Sweden. It’s got great infrastructure, a very large deposit and we have done the prefeasibility on a 20-year mine life, although it’s very much larger than that. I guess the key thing, you know, in the prefeasibility we’re focused on having a very simple processing flow sheet. The technology and the chemicals that are required are very simple, are used widely in Sweden today. Much of the technology we’re using is Scandinavian and so very, very simple and not dependent on any new and untested technologies. That means there’s a very high level of trust in the process. The financials are good. The rate of return is 20% after tax. The capex is $375 million. It’s very cheap on the current market and certainly that’s one of the lowest capex’s for a major dysprosium producing project….to access the rest of this interview, click here
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An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>