Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 15 November 2012
Frontier Rare Earths gives Q3 update on Zandkopsdrift
Frontier Rare Earths (TSE:FRO) Wednesday issued an update on progress at its Zandkopsdrift rare earth elements (REE) project in South Africa as well as financial results for the third quarter.
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 rare earth deposits worldwide.
Frontier has a direct 74 per cent interest and a current 95 per cent economic interest in Zandkopsdrift.
The company’s February 2012 PEA reported that Zandkopsdrift is estimated to contain roughly 950,000 tonnes of TREO applying a one per cent TREO cut-off, and gave a whopping net present value of $3.65 billion, after tax and royalties, at an 11 per cent discount rate.
Internal rate of return for the project was seen at 52.5 per cent, after tax and royalties, with a two year payback from start of production.
Frontier said it was currently in the process of carrying out a Prefeasibility Study (PFS) on Zandkopsdrift.
Based on the company’s current working capital position and plans, Frontier considers that it is fully funded to undertake its planned work programs up to and including completion a Definitive Feasibility Study on Zandkopsdrift.
As at September 30, 2012 the company said it had $30.8 million in cash. At the end of December 2011, the company's balance sheet registered $40.4 million in cash.
Frontier is currently engaged in exploration and evaluation activities and did not generate any significant operating revenue during the period.
The company reported a profit of $342,000, or 49 cents per share for the third months ended September 31, compared to a loss of $4.7 million, or loss of $4.61 per share in September 2011.