ASX: LIN - Lindian Resources
- Matt Birney
- Aug 8
- 3 min read
Lindian Resources: Funding & offtake: The best rare earths project in the world just got better!
Lindian Resources Executive Chairman Rob Martin on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed Lindian Resources Executive Chairman Rob Martin talk to Matt Birney on the Bulls N’ Bears Report about the multi-billion dollar critical minerals player that will fund Lindian’s massive rare earths project AND buy the product.
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RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by rare earths developer Lindian Resources.
Matt Birney - ASX code LIN.
Matt Birney - I'm Matt Birney and I'm joined now by the Executive Chairman of Lindian Resources, Rob Martin.
Matt Birney - Hi Rob.
Rob Martin - How are you Matt?
Matt Birney - I'm good. Okay, Rob, big week for Lindian. You've announced both funding and an offtake agreement to get your massive Kangankunde rare project in Malawi off the ground. Firstly, stage one of this project, what will it cost in total to build it? I understand that Iluka are backing you with their chequebook on both of those fronts. How much will they fund of stage one and in what form?
Rob Martin - So, stage one US $40 million for CapEx will require a little bit of working capital on top of that. Iluka have committed to $20 million US for a loan over 5 year period, 2-year grace period on principal payments.
Matt Birney - I understand you've got a two-stage plan for this project and Iluka has committed to an offtake for stage one. What percentage of production have they put their hand up for and over what period of time?
So we'll produce 15,000 tonnes per annum. Iluka have put their hand up for 6,000 tonnes per annum over 15 years.
Matt Birney - When will you get stage two up and running? And how do you expect to fund that?
Rob Martin - We'll work in parallel on stage two as part of our deal with Iluka, they have committed to having a right of first refusal to take 25,000 tonnes of stage two and committing to 50% of the CapEx costs.
Matt Birney - Just how big is your Kangankunde rare earths resource and reserve now? What sort of a mine life can it support?
Rob Martin - 261 million tonnes. It's got a 45 year mine life and runs at about 2.14% life of mine and about 3.1 to 3.5 for the first 5 to 7 years.
Matt Birney - There's a general view in the market that rare earths aren't viable at today's neodymium and praseodymium prices, but those prices will likely improve in the short to medium term. How reliant is Lindian on those global prices improving to make money out of Kangankunde?
Rob Martin - It will be operating in the lowest cost quartile. So, you know, even below $40 US a kilo, we'll be we'll be profitable. We have a floor price with Iluka that's it's well above our cost anyway. So, we're very very comfortable.
Matt Birney - Very quickly, when do you expect first production out of the mine?
Rob Martin - December next year.
Matt Birney - Rob Martin from Lindian Resources.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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