Rare Earth Exchanges

Australia’s ABX Group Discusses Deep Leads Rare Earth Element Project in Tasmania

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Highlights

  • ABx Group is developing the Deep Leads Rare Earth Element Project in Tasmania, focusing on ionic adsorption clay deposits rich in strategic heavy rare earth elements.
  • The company faces financial pressure with repeated losses, but continues to explore innovative rare earth separation technologies and collaborations.
  • ABx Group aims to bolster its position in the global rare earths supply chain, despite current low stock prices and investor challenges.

A Managing Director of the Abx Group (ASX: ABX) Dr Mark Cooksey (opens in a new tab) recently discussed on a podcast the progress at the Deep Leads Rare Earth Element Project in Tasmania. The company faces pressure to accelerate the endeavor, given the financials

Sharing insights about his recent Canadian trip, plus summarizing  meetings with key partners, including the innovative rare earth separation technology developed by Ucore. The two announced an MOU (opens in a new tab).

Shae Russell, writing for Mining.com Australia, covers Abx’s ongoing effort to develop a unique approach to rare earth production seeking to bolster its position in the global supply chain.

Key topics covered:

  • Deep Leads Project, Tasmania.
  • Collaboration with Ucore in North America.
  • Innovative rare earths separation technology.
  • ABx Group’s strategy to meet growing demand for rare earths.

Rare Earth Exchanges breaks down the underlying information about this company, and its project.

What is the Deep Leads Rare Earth Element Projectin Tasmania?

The Deep Leads RareEarth Element (REE) Project in Tasmania, managed by ABx Group, (opens in a new tab) focuses on the  exploration of ionic adsorption clay (IAC) deposits, known to be rich in strategically valuable heavy rare earth elements (HREEs).

The Site

ABx Obtains Highest Rare Earth Grades ...

Source: The Assay

Apparently, the Australian deposit is notably rich in dysprosium and terbium—critical inputs for advanced technologies such as electric vehicles, wind turbines, and military electronics.

First a bauxite discovery, later on exploration revealed significant REE deposits, now mapped over an extensive area.

The Deep Leads project is notable for its relatively high grade of Total Rare Earth Oxides (TREO)and the presence of water-soluble REEs, which allow for lower-costextraction through simple water-based leaching processes. This makes the project economically viable and environmentally favorable. The drilling campaign has shown promising results, with some of the highest-grade discoveries in Tasmania to date, and ongoing efforts are expanding the exploration footprint.

The Company

The Australian company trades at a very low 0.0430 as of this writing.  ABX Group Limited is an Australia-based technology company engaged in delivering materials, such as rare earth elements, bauxite and aluminum fluoride. The Company is engaged in conducting bauxite exploration and development programs in Queensland, New South Wales, and Tasmania.

What are the company’s focus areas?

  1. Creation of an ionic adsorption clay rare earth project in northern Tasmania

    Establishment of aplant to produce hydrogen fluoride and aluminum fluoride from recycled industrial waste, via its 83%-owned subsidiary, Alcore

There is also a legacy business:

  • Mining and enhancing the value of bauxite resources for cement, aluminum and fertilizers

See the company’s annual report for 2023.

The ABx Group Limited (ASX: ABX) stock price remains very low.  Their financials are not good, with repeated losses over recent periods. For example, in the first half of 2023, ABx posted a loss of AUD 0.005 per share, which was worse than the previous year (AUD 0.004 loss per share). And they just recently reported a loss of AUD 0.007 (opens in a new tab) per share for the full year in 2023.

Not surprisingly such financial results make the stock less attractive to investors. Additionally, the company has faced challenges with shareholder dilution due to equity offerings, which can reduce the value of existing shares.

ABx's involvement in early-stage exploration projects, such as its rare earth element discoveries in Tasmania, has not yet translated into significant revenue. These projects require substantial capital and time to develop, making the stock less appealing to short-term investors.  Australian investors tend to be familiar with mining, a favorite, however.  The company's market capitalization is also relatively small, which makes it more vulnerable to market fluctuations and external risks.

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