Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: DEFN; DFMTF; 35D

Rare Earths Co. Starts Constructing Pilot Plant
Research Report

Share on Stocktwits

Source:

At this facility, the Canadian company will process concentrate from its critical metals project in preparation for the upcoming prefeasibility study, noted a Noble Capital Markets report.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) is "entering an important new phase" of its Wicheeda rare earth (RE) project with the construction of a hydrometallurgical pilot plant, now underway, reported Noble Capital Markets analyst Mark Reichman in a Feb. 23 research note.

"The pilot plant is being configured to produce a high-purity RE precipitate suitable as feedstock for a rare earth element (REE) separation plant," noted Reichman.

Good Time To Buy

Defense Metals is currently trading at about CA$0.37 per share, much lower than Noble Capital's CA$0.70 per share target price on the Outperform-rated company, Reichman wrote.

Thus, the potential return with Defense Metals is significant, and Reichman noted now is an opportune time to invest in it.

"We believe the current stock price offers an attractive entry point for investors," the analyst added.

Timeline for Plant, Operations

Defense Metals plans to commission the pilot plant in March, ultimately feeding it 600 kilograms of mineral concentrate processed from a Wicheeda deposit bulk sample.

The Canadian company will carry out operations in two parts and be done by April.

Dual Objectives in Sight

The reasons for the plant are twofold, noted Reichman. For one, Defense Metals aims to use it to show, on a large scale, that rare earths can be produced using acid-bake hydrometallurgy on flotation concentrate from Wicheeda.

The acid bake method, more commonly used and less complicated, yielded better recovery rates for the critical metals company on testing than gangue acid leaching on which the preliminary economic assessment was based. Noble expects the use of the acid bake process to result in improved project design and economics for Wicheeda.

"Samples produced from the pilot plant will be shared with potential end users for product qualification," Reichman wrote.

PFS Coming Up

Defense Metals' second objective with the pilot plant is to collect data during operations to be used in the upcoming preliminary feasibility study (PFS), due out in Q1/24.

"Given the pilot plant program's impact on the engineering design and economics of the feasibility study, we think adoption of the acid bake hydrometallurgy process, along with outstanding results from the 2021 and 2022 drilling programs, bodes well for a compelling PFS," commented Reichman.

Sign up for our FREE newsletter

Disclosures:

1) Doresa Banning wrote this article for Streetwise Reports LLC as an independent contractor. They or members of their household own securities of the following companies mentioned in the article: None. They and members of their household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Defense Metals Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Defense Metals Corp. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp., a company mentioned in this article.

Disclosures for Noble Capital Markets, Defense Metals Corp., February 22, 2023

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis. Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.” FINRA licenses 7, 24, 63, 87.

WARNING
This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc.. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View: All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation: No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or Probe report.

Ownership and Material Conflicts of Interest: Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.




Want to read more about Critical Metals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe