American Rare Earths (ASX:ARR) Reveals Billion-Dollar Potential in Updated Scoping Study
Key Highlights
American Rare Earths (ASX:ARR) has released an updated scoping study for its Halleck Creek Rare Earths project. The study underscores robust financial metrics with a 3 Mtpa base case scenario achieving a NPV10% of US$558 million and an IRR of 24%, supported by a CAPEX of US$456 million. An expanded 6 Mtpa case project a NPV10% of US$1.17 billion and an IRR of 28.4%, with a CAPEX of US$737 million.
Strategic Advantages
The Halleck Creek project benefits from state land tenure in Wyoming, enabling expedited permitting processes. This positions ARR as a first-mover in the U.S. rare earths sector, independent of tariffs and reliant on domestic processing. The initial phase involves mining approximately 62.3 million tonnes of ore over 20 years, utilizing just 2.4% of the 2.63 billion tonnes JORC resource, with significant potential for expansion.
Future Outlook
ARR aims to commence first production by 2029, with plans to initiate Phase One of a pilot beneficiation plant. The company is advancing key milestones for 2025 to further mitigate risks and develop the Halleck Creek project. Continued exploration could potentially position ARR among the top rare earth producers outside China, enhancing U.S. supply chain security for decades to come.
Executive Comments
Chris Gibbs, CEO of American Rare Earths, stated, “The Updated Scoping Study reinforces Halleck Creek’s strong economic potential, strategic permitting advantage and clear pathway to development. With a large-scale resource and favourable economics, we are uniquely positioned to help secure America’s rare earth supply and reduce dependence on foreign sources.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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