Latest news with #ShengheResources
News.com.au
15-05-2025
- Business
- News.com.au
Resources Top 5: Chinese producer grabs ownership of junior explorer Peak Rare Earths
China's Shenghe Resources to snap up Peak Rare Earths in entitlement deal Brightstar fires up another round of ore processing under its agreement with Genesis Minerals at Laverton RMI, NIM and OMX all up on no news These are your standout small cap resources stocks for Thursday, May 15, 2025. Peak Rare Earths (ASX:PEK) Shenghe Resources' subsidiary, Ganzhou Chenguang Rare Earths New Material Co, has agreed to acquire PEK under a binding scheme implementation deed with the junior explorer. Under the deal, the Chinese partly state-owned rare earths producer will buy PEK for $15.05m, plus an amount equal to the funds raised under a proposed ~A$7.5 million entitlement offer. If the full amount of ~$7.5 million is raised pursuant to the entitlement offer and the scheme is implemented, PEK shareholders will receive ~35.9c per PEK share in cash, a mega 199% premium to PEK's closing share price of 12c per share on May 9. US$2.9b market cap company Shenghe Resources is listed on the Shanghai stock exchange and is an existing shareholder in PEK, with binding off take rights to rare earths production from the Ngualla rare earth project in which PEK holds an 84% interest. Shenghe is also the largest importer of rare earth concentrate into China with its operations spanning rare earth mining, beneficiation, refining, trading and alloy and metals production. The two companies signed a non-binding term sheet in July 2024 covering an integrated investment, funding and development solution for Ngualla, with the proposed transaction entailing Shenghe investing ~A$96m to subscribe for a 50% interest in Peak's wholly owned subsidiary, Ngualla Group UK (NGUK). Since that time, PEK and Shenghe have made significant progress toward finalising binding transaction terms for the NGUK transaction. However, recent geopolitical and regulatory changes have heightened the risks associated with establishing a formal joint venture. In response, PEK and Shenghe have evaluated other deal structures that could offer greater clarity and certainty for the project, with the goal of achieving a more favourable outcome for both companies and their investors. PEK believes the scheme delivers a superior outcome compared to the NGUK transaction for several reasons – the scheme has the potential to provide a significantly higher value outcome for PEK shareholders on a risk-weighted basis, with an implied value for PEK of A$150.5 million (pre-entitlement offer), compared to A$96m for Peak's interest in Ngualla under the NGUK transaction; the scheme is unlikely to give rise to the same geopolitical and regulatory risks that ultimately resulted in the parties agreeing to discontinue the NGUK transaction; and PEK shareholders will have an opportunity to realise an attractive price for their shares and avoid potential risks around the development, operation and funding of Ngualla. PEK's Ngualla asset in Tanzania is one of the largest and highest grade undeveloped rare earth deposits in the world with a multi-generational resource of 214Mt over an initial 24-year mine life. Brightstar Resources (ASX:BTR) Under its ore purchase agreement with Genesis Minerals, Brightstar Resources has launched a second processing campaign at the Laverton Hub, taking advantage of elevated gold prices. The May campaign will process the ~55,000t of ore grading more than 2g/t gold that has been delivered to the Laverton mill ROM pad. It follows the first parcel of 56,449t of ore which reconciled at a blended head grade of 2.51g/t gold – higher than the initial blended estimate of +2g/t gold – and achieved a strong recovery rate of 94.25% to deliver 4297oz of gold. With no hedging contracts in place, the company stands to benefit directly from gold's current high price levels of roughly US$3,185 (A$4,955) per ounce. (Up on no news) As part of its exploration program at the Mpanda copper-gold project, RMI has initiated lab testing on soil and auger samples collected from the Stalike and Kabungu prospects. Combined with previous results from auger drilling, trenching, rock chip and soil sampling for the two prospects, the objective is to generate high potential drill targets. Previous results from the project have returned impressive gold and copper grades from rock samples up to 36.7g/t gold and 11.89g/t copper from Kabungu and 13.58% copper and 3.24g/t gold from Stalike. RMI executive chairman Asimwe Kabunga said a targeted drilling program is planned for the Stalike and Kabungu prospects following completion of this current soil and auger sample analysis work stream. 'Mpanda is clearly a richly endowed mineralised system,' he said. 'The extensive number of small-scale operations demonstrate that systematic, modern exploration has the potential to define larger scale copper-gold systems.' Nimy Resources (ASX:NIM) (Up on no news) Nimy still has a wind in its sail following the announcement yesterday of a Phase 2 drilling campaign for the development of a JORC resource at the Block 3 gallium discovery in WA. The Block 3 prospect covers an area of 3km x 1.5km, with the current exploration target of 9.6Mt to at an average grade ranging from 39ppm to 78ppm gallium only covering the Eastern segment of this zone. Critical mineral gallium is key component of many advanced technologies including high-speed semiconductors, LEDs, solar cells and defence systems. Gallium is typically produced as a by-product of alumina and zinc refining, with China accounting for 98.4% of global gallium production in 2024. NIM's drilling program is expected to take three weeks with assays due as soon as feasible. Orange Minerals (ASX:OMX) (Up on no news) Although OMX has no news to report today, the company carried out a field mapping program at the Calarie project in Forbes, NSW, last month after recently securing land access agreements. The land access agreements allowed for exploration to begin over newly accessed ground at the Bald Hill, Mary's Dream/ Toss a Penny, McMillans and Nibblers Hill prospects. The Calorie asset boasts an inferred resource of 0.87Mt at 1.83 g/t gold, containing 50,796oz of gold with previous drill results returning 10.6m at 5.63m g/t gold and 4.6g/t gold from 39.1m. A targeting review is also underway with detailed drone-based magnetic surveys planned across the Mary's Dream and Nibblers Hill prospects to better delineate key structural trends. Previous drilling at these prospects was shallow and did not adequately test the potential for primary mineralisation. Further drilling will be considered following the completion of the targeting review.
Nikkei Asia
15-05-2025
- Business
- Nikkei Asia
Rare earths race heats up with US-Saudi deal and Shenghe acquisition
SHAUN TURTON and KENJI KAWASE SYDNEY/TOKYO -- U.S. rare earths company MP Materials has signed an initial agreement with Saudi miner Maaden to "explore" developing a rare earths industry in the Middle Eastern kingdom. The agreement, announced Wednesday, came as major Chinese rare earths player Shenghe Resources -- a strategic investor in MP -- said it will acquire Australian-listed explorer Peak Rare Earths.
Nikkei Asia
15-05-2025
- Business
- Nikkei Asia
Rare earths race heats up with US-Saudi deal and Shanghe acquisition
SHAUN TURTON and KENJI KAWASE SYDNEY/TOKYO -- U.S. rare earths company MP Materials has signed an initial agreement with Saudi miner Maaden to "explore" developing a rare earths industry in the Middle Eastern kingdom. The agreement, announced Wednesday, came as major Chinese rare earths player Shenghe Resources -- a strategic investor in MP -- said it will acquire Australian-listed explorer Peak Rare Earths.
Yahoo
08-05-2025
- Business
- Yahoo
Top Asian Growth Companies With High Insider Ownership In May 2025
As global markets navigate a landscape marked by easing trade tensions and mixed economic signals, Asian economies are also experiencing shifts that present unique opportunities for investors. In this environment, growth companies with high insider ownership can offer compelling prospects, as they often benefit from strong alignment between management and shareholder interests, which can be particularly advantageous during periods of market uncertainty. Top 10 Growth Companies With High Insider Ownership In Asia Name Insider Ownership Earnings Growth Sineng ElectricLtd (SZSE:300827) 36% 29.0% WinWay Technology (TWSE:6515) 22.1% 21.4% Laopu Gold (SEHK:6181) 36.4% 40.2% Global Tax Free (KOSDAQ:A204620) 20.8% 35.1% Fulin Precision (SZSE:300432) 13.6% 44.2% Zhejiang Leapmotor Technology (SEHK:9863) 15.6% 60.8% giftee (TSE:4449) 34.5% 67.1% Vuno (KOSDAQ:A338220) 15.6% 148.2% Suzhou Gyz Electronic TechnologyLtd (SHSE:688260) 16.4% 121.7% Techwing (KOSDAQ:A089030) 18.8% 65% Click here to see the full list of 623 stocks from our Fast Growing Asian Companies With High Insider Ownership screener. Let's dive into some prime choices out of the screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: Shenghe Resources Holding Co., Ltd is involved in the research, development, production, and supply of rare earth and related products both in China and internationally, with a market cap of CN¥20.74 billion. Operations: Shenghe Resources Holding Co., Ltd generates its revenue primarily through the research, development, production, and supply of rare earth and related products across domestic and international markets. Insider Ownership: 13.5% Revenue Growth Forecast: 27.9% p.a. Shenghe Resources Holding has demonstrated substantial growth, with earnings surging by a very large amount over the past year. Forecasts suggest continued robust revenue and earnings growth, outpacing the Chinese market. However, its dividend yield of 1.01% is not well covered by free cash flows, and recent financial results have been influenced by significant one-off items. Despite a lower price-to-earnings ratio than the market average, its return on equity is expected to remain modest at 10.1%. SHSE:600392 Earnings and Revenue Growth as at May 2025 Simply Wall St Growth Rating: ★★★★★☆ Overview: Jiangsu Pacific Quartz Co., Ltd. focuses on the research, development, manufacture, marketing, and sale of quartz materials in China with a market capitalization of CN¥18.23 billion.
News.com.au
27-04-2025
- Business
- News.com.au
The US wants to stockpile rare earths, and these miners are running hot as a result
Several producers and developers saw share prices jump off the back of US REE stockpile rumours Amid trade tensions, President Trump looks to shore up non-Chinese supply of critical minerals Countries like Brazil could become global powerhouses in rare earths This month, China implemented export restrictions on a range of rare earth elements – as well as permanent REE magnets – creating a supply chain shock around the globe. China produces around 90% of the world's processed rare earths and magnets. The United States has only one rare earths mine, Mountain Pass, which until recently has been reliant on China to process its material and renewed an offtake agreement with China's Shenghe Resources as recently as January last year. Amidst the brewing trade war between the US and China, Nevada-based rare earths miner MP Materials – operator of the Mountain Pass mine – saw its share price climb more than 20% overnight on April 15 in New York. The jump in valuation comes as Reuters recently reported US President Donald Trump is planning to sign an executive order to shore up the country's domestic supply of the critical mineral. Coming ahead of the announcement by Aussie PM Anthony Albanese of a proposed Australian critical minerals strategic reserve, the rumours that Trump would sanction the same for the Yanks, and even sign an executive order supporting deep-sea mining for rare earth ores, set off a major reaction from rare earths miners and explorers. Tariffs of 125% on US products into China, a retaliatory measure from Beijing against Trump's shoot first tariff measures, have seen MP halt shipments of concentrate to China. It now refines around half of its product into oxides at a plant in California and is planning to produce its first magnets for General Motors from a metal and magnet facility in Texas this year. One stock which saw its share price jump 50% off the back of speculation about a US rare earths stockpile was St George Mining (ASX:SGQ), whose executive chairman John Prineas says it all comes down to China's dominance in the technology to separate rare earths and produce the final product. 'We do have some very good rare earths deposits outside of China, but Mountain Pass and Lynas (ASX:LYC), the two major producers, cannot separate the rare earths,' he said. 'They send their concentrate to China to produce these final products so it's a bit of an embarrassment for the west and gives China the opportunity to weaponise their superiority in this area. 'Clearly there's very strong motivation for creating these complete supply chains in the west, with very strong support to have more rare earths mining and also the technology to be able to separate and produce permanent rare earth magnets. 'It's a very good macro environment for emerging companies like ourselves, developers, hoping to be producers, with a lot of investors willing to come and support us to get to that next level.' Brazil: The new REE processing hub Brazil's mining infrastructure and bounty of high grade rare earths resources has seen experts finger it as a potential winner in the US-China trade war, as it becomes clearer the world's leading military and economic power will not stomach being under China's thumb when it comes to materials for car motors, electronics and especially defence industries. "We can't be reliant on China for production, so there needs to be new projects and they need to be financed and supported," Argonaut Funds Management portfolio manager David Franklyn told Stockhead in a recent interview. "The current producers like a Lynas or an MP have bumped up." " But also the more advanced projects are getting interest." Franklyn said Brazilian rare earth hopefuls look like they have the potential to produce material and still make money at prices similar to current levels. St George's 40.6Mt at 4.13% TREO Araxá project in Minas Gerais, also a potentially large source of steel-firming additive niobium, could be at the forefront of the next processing hub for rare earths. SGQ is participating in Brazil's permanent magnet-making initiative – called MAGBRAS – which is aimed at establishing Brazil's first permanent magnet-making facility. Other participants include major end-users such as the auto giant Stellantis, as well as emerging rare earths producers in Brazil like Meteoric Resources (ASX:MEI), a favourite of Argonaut's Franklyn with its exposure to the especially rare heavy rare earths, and Viridis Mining and Minerals (ASX:VMM). 'The Brazilians are the world's number three in terms of reserves of rare earths, and they're domestically trying to establish more reliable supply chains for rare earths and permanent rare earths magnets,' Prineas said. 'They've got a big automobile industry which requires permanent magnets and they've got the MAGBRAS initiative which a lot of Australian companies with rare earths deposits in Brazil have signed up to, as well as big companies like Stellantis and motor vehicle makers who want to see Brazil emerge as a powerhouse for rare earths production and potentially permanent magnets, so they've got another source of supply and they're not vulnerable to these geopolitical tensions between the US and China.' If the initiative gets off the ground it'll be a pretty big deal for St George. 'They obviously need domestic supply of rare earths ... concentrate and we can deliver that,' Prineas said. 'The other projects I mentioned are also very, very good but one of the advantages we have, is that we are a hard rock deposit not an ionic clay deposit, and typically they have a much smaller environmental footprint. 'Ionic clays are much lower grade, require big tailings dams, big strip ratios etc. so they are a little bit harder to get into production and get permitting. 'We are located in an established mining region, and it's a relatively small footprint that we need to actually start producing rare earths. 'We could be the first to market in Brazil in terms of rare earths projects.' Helping that along is the company's cooperation agreement with the State of Minas Gerais to expedite permitting approvals so they've got a great chance to really fast track the construction of a new mine, Prineas said. Ionic clays still have legs At the same time, the country's ionic clay purveyors believe they will be in a good place to turn on production once markets respond with higher prices or US Government funding arrives to fill the gap. "There is a big opportunity for Brazil because the ionic clays are some of the highest margin rare earth projects anywhere in the world," said Andrew Reid, managing director of Brazilian Critical Minerals (ASX:BCM). "They can get up and running, they're not big billion dollar hard rock projects." BCM's Ema project has already been put through the rigours of a scoping study, with a US$55m capex price tag making it one of the cheapest projects to bring into production anywhere in the world. Operating costs are also impressive, with Ema slated to produce 4800tpa of total rare earth oxides in a 55.3% concentrate at unit cash costs of US$6.15/kg TREO and US$16.95/kg NdPr, a reference to the key light rare earth magnet metals neodymium and praseodymium. At NdPr prices of just US$74/kg, only ~US$20/kg above current levels, the mine generates a post-tax NPV8 of US$498m and IRR of 55%, with payback just 28 months into its two decade life. Without Chinese rare earth metals, Reid says end users will need to turn to new operations and build out a supply chain in the West. "In the Western market, it simply doesn't exist because there's only a few mines in operation right now and all of that product is fully talked for through offtake agreements. " So there's nothing available. Everybody wants rare earths in the Western market but ... The ability for projects to get up and running is very limited because most of them are capital intensive. "We sit in a very niche position of having very low capex and very low opex relative to just about every other project on the planet right now." Lynas x2 St George's resource at Araxa was just released this month, and Prineas said the grades are up there with Lynas' in WA. But Prineas says Araxá is twice as big as Lynas was when it started production over a decade ago. 'It's definitely an economic resource,' he said. 'We have to complete our scoping study and feasibility study to confirm that, and we are going to be doing more drilling to expand the resource.' Apparently, the independent resource geologist that produced that maiden resource told the company 'drill here, here and here and you'll more than double the resource' with Prineas keen as a bean to start drilling. 'We can't wait to start drilling, which should start in the next 2-3 weeks and we're already planning to increase the program from 5,000m to 9,000m of drilling,' he said. 'The resource we have already is enough I think for a 20+ year mine life but bigger numbers are always well received by the market.' Metallurgical testwork is also underway, with results expected in the next 4-6 weeks. Which other ASX stocks saw an uplift? Producer Lynas also saw a 13% upswing last week, underlining its position as the go-to large cap rare earths stock for ASX investors. The company hasn't rested on its laurels, having expanded production capacity at Mt Weld and its Malaysian refinery, and opening a new midstream plant in Kalgoorlie. LYC is also planning to build a manufacturing base for light and heavy rare earths in Houston with funding from the US Department of Defense. But we're taking a look down the chain at some of the smaller stocks with the opportunity to make outsized gains as the trade war lifts rare earths interest. Axel REE (ASX:AXL) Also operating in Brazil is AXL with its Caladão and Caldas projects, where drilling has returned strong REE results like 14m at 3921ppm TREO from 1m and 37.37m at 2774ppm TREO from 7m along with significant gallium from surface (Caladão) and averages of 3229ppm TREO (Caldas). Last month, the company executed multiple memorandum of understandings with the Minas Gerais state government to fast track development of the two projects. This includes a MoU with Federation of Industries Minas Gerais, which owns and operates the LabFab ITR, the first rare earth magnet research and production facility in South America. Another MoU was signed with the State Economic Development Department and Invest Minas to support project development and fast-track licensing and approvals. In the near-term, AXL is working on the maiden resource calculation for Caladão. Meteoric Resources Rated a speculative buy with a 35c price target by Canaccord, Meteoric reiterated in an announcement in early April that its Caldeira ionic clay project in Brazil would be able to produce significant amounts of the very REEs that China has just placed restrictions on. In its October 2024 scoping study, the company estimated the project could produce 170t of samarium, 10t of terbium and 60t of dysprosium in the first year of production. This will increase significantly to 1190t of samarium, 90t of terbium and 430t of dysprosium in the sixth to tenth years of production. Caldeira has a global resource of 619Mt at 2538ppm TREO with 5000t of terbium oxide and 25,000t of dysprosium oxide. There is also significant exploration upside. And just last week, the company released the global resource for the project of 1.5Bt at 2,359ppm TREO containing critical rare earth oxides, rising strongly off the announcement of a maiden resource at the Barra do Pacu deposit of 389Mt at 2204ppm TREO This kind of size could provide a low cost, alternative non-chinese supply. Other near-term milestones include a resource update upgrade, pre-feasibility study and environmental approvals.
