TIDMREG
RNS Number : 4095A
Rare Earths Global PLC
30 March 2012
Press Release 30 March 2012
Rare Earths Global Limited
("REG" or the "Group")
First Day of Dealings on AIM
Rare Earths Global Limited, a leading Chinese mining services
group focused on the extraction, separation, refinement and trading
of rare earth elements, oxides and other related products, today
announces the commencement of dealings of its Ordinary Shares on
the Alternative Investment Market (AIM) of the London Stock
Exchange. Charles Stanley is acting as Nominated Adviser and as
Broker to the Company. The stock market EPIC will be REG.L.
Placing Statistics
Placing Price 247 pence
-------------------------------------------- ---------------
Number of Ordinary Shares in issue prior
to and immediately following the Placing 63,587,681
-------------------------------------------- ---------------
Market Capitalisation at the Placing Price GBP157 million
on Admission
-------------------------------------------- ---------------
Commenting on the Company's AIM listing, Simon Ong, Chief
Executive Officer of Rare Earths Global, said: "The Board is very
pleased with the successful Admission to AIM which will underpin
the next stage in the Company's development."
"We look forward to working to further develop the business and
capitalise on this fast-growth market."
- Ends -
For further information:
Rare Earths Global Limited
Ivor Shrago, Non-Executive Chairman Tel: +44 (0) 790 025 1925
Simon Ong, Chief Executive Officer Tel: +852 9033 4551
www.rareearthsglobal.com
Charles Stanley Securities
Dugald J. Carlean / Luke Webster Tel: +44 (0) 20 7149 6000
/ Carl Holmes
www.csysecurities.com
Media enquiries:
Abchurch Communications Limited
Henry Harrison-Topham / Mark Dixon Tel: +44 (0) 20 7398 7729
mark.dixon@abchurch-group.com www.abchurch-group.com
Notes to editors:
Smelting and Separation
The Sanxie Plant, based in Guangdong Province, is the rare earth
separation and refining business of the Group. The Sanxie Plant was
established in 1994 and ever since has been principally engaged in
the business of producing, separating and refining single REEs,
REOs, rare earth concentrates, rare earth metals and other rare
earth products.
Mining Services
Through its wholly owned subsidiary Billion Full (Huangshan)
Mining Services Technology Co., Ltd (Billion Full), the Company
provides mining management services, technical support and
equipment hire to local rare earth mining companies and factories
in China. Billion Full has signed a long term exclusive technical
services contract with Zhejiang Ke Xin Electronics Co. Ltd, whereby
the Company provides on-site operation and management of the leach
mining process. In addition, Billion Full provides technical
support in exploration know-how, design and construction of mines,
water control and treatment of waste. By offering mining services
the Company is able to manage the complete value chain in the
production of REPs. This creates an efficient, low cost process
which results in higher grade material at a better margin.
REP Trading
In 2011, Huangshan Quansheng Mineral Products Sales Co., Ltd,
acquired a business licence to trade REP in the domestic Chinese
market and in the overseas market using its export quota through
Pingyuan Sanxie Rare Earth Smelting Co., Ltd. This allows the Group
to trade REP at any stage of the production process at their own
discretion as opposed to being required to sell in the spot market.
The Board expects to begin REP trading as soon as possible after
Admission.
REEs and the market
Rare earth elements are a group of seventeen elements that are
critical to the creation of many electronic, clean energy and clean
technology applications. The group of elements is made up of
fifteen lanthanides in addition to the individual elements Yttrium
and Scandium. Yttrium and Scandium are sometimes also defined as
rare earths because they are found with lanthanide deposits and
possess similar characteristics. Rare earth elements are moderately
abundant in the earth's crust, some even more abundant than copper,
lead, gold and platinum. However, most rare earth elements are not
concentrated enough to make them exploitable economically.
REEs can be separated into two groups known as 'light' rare
earths and 'heavy' rare earths. In the lanthanides group, any
elements between atomic numbers 57 (Lanthanum) and 62 (Samarium) in
the periodic table are LREs. Elements with atomic numbers 63
(Europium) to 71 (Lutetium) in the periodic table are HREs. This
delineation is due to differences in ionic radius, crystal
structure and basicity of material. The ionic radius of the HREs
makes them denser, more resistant to high temperatures, and less
reactive in some circumstances. In addition, as well as having more
unique properties, the HREs are more scarce than LREs. For example,
regardless of the rare earth oxide grade, most rare earth deposits
have a ratio of only around 95:5 (LRE:HRE).
Ten year historical view of selected REE prices
REO (99% Price ($ per kg)
purity)
------------ -----------------------------------------------------------------
La Ce Nd Pr Sm Dy Eu Tb
------------ ------ ------ ------ ------ ------ ------- ------- -------
2002 2.3 2.3 4.4 3.9 3.0 20.0 240.0 170.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
2003 1.5 1.7 4.4 4.2 2.7 14.6 235.4 170.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
2004 1.6 1.6 5.8 8.0 2.7 30.3 310.5 398.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
2005 1.5 1.4 6.1 7.6 2.6 36.4 286.2 300.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
2006 2.2 1.7 11.1 10.7 2.4 70.4 240.0 434.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
2007 3.4 3.0 30.2 29.1 3.6 89.1 323.9 590.4
------------ ------ ------ ------ ------ ------ ------- ------- -------
2008 8.7 4.6 31.9 29.5 5.2 118.5 481.9 720.8
------------ ------ ------ ------ ------ ------ ------- ------- -------
2009 4.9 3.9 19.1 18.0 3.4 115.7 492.9 361.7
------------ ------ ------ ------ ------ ------ ------- ------- -------
2010 22.4 21.6 49.5 48.0 14.4 231.6 559.8 557.8
------------ ------ ------ ------ ------ ------ ------- ------- -------
Q2 2011 135.0 138.3 256.2 220.1 125.6 921.2 1830.0 1659.2
------------ ------ ------ ------ ------ ------ ------- ------- -------
Q3 2011 117.7 118.7 338.9 344.7 129.5 2262.3 4900.0 3761.5
------------ ------ ------ ------ ------ ------ ------- ------- -------
Q4 2011 104.1 102.0 234.4 197.3 103.4 1449.8 2842.9 2334.2
------------ ------ ------ ------ ------ ------ ------- ------- -------
23/01/2012 52.0 45.0 200.0 170.0 80.0 1420.0 3800.0 2820.0
------------ ------ ------ ------ ------ ------ ------- ------- -------
Currently, the prices of REEs range dramatically between LREs
(e.g. Lanthanum US$52/kg) and HREs (e.g. Europium US$3,800/kg). The
table above shows internationally available prices for REEs. The
Group believes that the domestic prices available in China will
typically be around 20% lower than those shown above.
Since 1992 China has controlled the world's primary rare earth
export market. In 2003, China introduced an export quota
restricting international supply to enable it to control global
supply and pricing. Rare earth pricing has risen in any event due
to the increasing demand from the automobile, consumer goods,
technology and wind turbine industries. REE contribute to these
goods enabling them to be made smaller, more efficient and more
powerful.
The following table sets out the selected end uses for the LRE
and HRE:
Light Rare Earths Major End Use Heavy Rare Earths Major End Use
(more abundant) (less abundant)
------------------ --------------------- ------------------ ---------------------
Lanthanum hybrid engines, Terbium phosphors, permanent
metal alloys magnets
------------------ --------------------- ------------------ ---------------------
Cerium auto catalyst, Dysprosium permanent magnets,
petroleum refining, hybrid engines
metal alloys
------------------ --------------------- ------------------ ---------------------
Praseodymium magnets Erbium phosphors
------------------ --------------------- ------------------ ---------------------
Neodymium auto catalyst, Yttrium red colour,
petroleum refining, fluorescent
hard drives lamps, ceramics,
in laptops, metal alloy
headphones, agent
hybrid engines
------------------ --------------------- ------------------ ---------------------
Samarium magnets Holmium glass colouring,
lasers
------------------ --------------------- ------------------ ---------------------
Thulium medical x-ray
units
------------------ --------------------- ------------------ ---------------------
Lutetium catalysts in
petroleum refining
------------------ --------------------- ------------------ ---------------------
Ytterbium lasers, steel
alloys
------------------ --------------------- ------------------ ---------------------
Gadolinium Magnets
------------------ --------------------- ------------------ ---------------------
Europium red colour for
television and
computer screens
------------------ --------------------- ------------------ ---------------------
Source: DOI, U.S, Geographical Survey, Circular 930-N
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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