Coffee with Samso Episode 158 is with Brett Hazelden, Managing Director and CEO of OD6 Metals Ltd (ASX:OD6).
The recent rise in rare earth companies has thrown attention into a sector that was largely ignored for over a decade. There were some movement in the station but largely a sector that had no excitement for investors.
The geopolitical instability has created what could be a lucrative business for Australia. There is a lot of narration about Australia creating a more value added resource sector. If this were to materialise, this would add fuel to the coming bull market.
The is no secret that the world is moving to a future that requires a clean energy path. It is also widely accepted now that to achieve the clean energy that is demanded, there is a need for a lot more minerals. Investors who take stock of the increasing demand and hear about the dwindling stocks will agree that there must be another bull run.
In this episode, Brett Hazelden gives us a good lesson about the REE market. I believe that the market does not actually understand the ins and outs of the sector. The results in the announcements are all just numbers. Brett agrees with my comments and hence he has delivered a great episode of Coffee with Samso as he slowly unravels the mystery of the REE market.
We have covered a large aspect of the sector you must take time and watch this episode if you want to know about the Rare Earth market.
Chapters:
00:00 Start
00:20 Introduction
01:06 About Brett and OD6 Limited
02:42 What caused the rare minerals rush?
04:54 Rundown of the project
07:22 What is the "Holy Grail" number that will be an economic grade ?
09:22 Are neodymium and praseodymium still the market for rare earths?
10:44 Trends in the geology
13:41 Chemistry and relative comparison of conductivity?
14:50 Possibility of relationship with China?
17:18 The Ionic clays
18:51 Relationship between granites
22:58 What is the difference between Splinter Rock and Grass Patch?
23:54 What other possibilities are there?
24:59 Pegmatites in the granites?
27:01 Marketing the project
29:20 Has there been any initiatives to go and talk to the government?
35:01 What is causing the increase in demand of rare earth minerals?
36:35 News flow
37:37 Why invest in OD6?
38:08 Conclusion
PODCAST
About Brett Hazelden
Managing Director & Chief Executive Officer
BSc, MBA, AICD
Mr Hazelden is a Metallurgist who brings over 25 years’ experience serving the Australasian resources industry. His experience includes being a Company Director, Managing Director, CEO, Project Manager, Study Manager and originally a Metallurgist in an operating environment.
Mr Hazelden brings a diverse range of capabilities from exploration, project development studies, research and development, project approvals, offtake agreements, equity raising, debt financing plus mergers and acquisitions. He has worked across multiple commodities including potash, gold, copper, zinc, lead, iron ore, tungsten, salt, diamond and now rare earth sectors. Most recently, Brett was the Co-founder and Managing Director/CEO of Kalium Lakes (Kalium Lakes Ltd (ASX:KLL)).
Mr Hazelden was appointed as a Director on 1 April 2022.
Mr Hazelden is not considered to be an independent Director as he is engaged in an executive capacity.
About OD6 Metals Ltd (ASX:OD6)
OD6 Metals is an Australian public company with a purpose to pursue exploration and development opportunities within the resources sector. The Company holds a 100% interest in the Splinter Rock Project and Grass Patch Project which are located in the Goldfields-Esperance region of Western Australia, about 30 to 150km north of the major port and town of Esperance.
The projects are considered prospective for clay rare earth elements (REEs), with the Company’s aim of delineating and defining economic resources and reserves to develop into a future revenue generating operational mine. Clay REE deposits are currently economically extracted in China who is the dominant world producer.
Rare earth elements (in particular, Nd and Pr), are becoming increasingly important in the global economy, with uses including advanced electronics, permanent magnets in electric motors and electricity generators (such as wind turbines) and consumer electronics.
Why OD6 Metals?
- Emerging REE major new clay province in WA, potentially competitive with China’s deposits.
- Dominant land position with over 4,800 km2
- Located close to Esperance port, sealed roads and renewable energy infrastructure.
- Extensive Clay REE in 10 to 37m thick blanket over very large areas .
- Wide intersections of TREO with excellent Nd-Pr concentrations of 20%
- Multiple targets for potentially globally significant REE resources.
- Excellent regional metallurgy.
- Clay REE’S are typically low capital intensity and high margin product.
- Significant supply shortage forecast due to rapid demand increase for renewable power, electric vehicles and electronics.
- Critical metals being prioritised by Governments around the world (need for diversity of supply away from China).
For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au
About Samso
Samso is a renowned resource among the investment community for keen market analysis and insights into the companies and business trends that matter.
Investors seek out Samso for knowledgeable evaluations of current industry developments across a variety of business sectors and considered forecasts of future performances.
With a compelling format of relaxed online video interviews, Samso provides clear answers to questions they may not have the opportunity to ask and lays out the big picture to help them complete their investment research.
And in doing so, Samso also enables companies featured in interviews to build valuable engagement with their investment communities and customers.
Headed by industry veteran Noel Ong and based in Perth, Western Australia, Samso’s Coffee with Samso and Rooster Talk interviews both feature friendly conversations with business figures that give insights into Australian Stock Exchange (ASX) companies, related concepts and industry trends.
Noel Ong is a geologist with nearly 30 years of industry experience and a strong background in capital markets, corporate finance and the mineral resource sector. He was founder and managing director of ASX-listed company Siburan Resources Limited from 2009-2017 and has also been involved in several other ASX listings, providing advice, procuring projects and helping to raise capital.
He brings all this experience and expertise to the Samso interviews, where his engaging conversation style creates a relaxed dialogue, revealing insights that can pique investor interest.
Noel Ong travels across Australia to record the interviews, only requiring a coffee shop environment where they can be set up. The interviews are posted on Samso’s website and podcasts, YouTube and other relevant online environments where they can be shared among investment communities.
Samso also has a track record of developing successful business concepts in the Australasia region and provides bespoke research and counsel to businesses seeking to raise capital and procuring projects for ASX listings.
Disclaimer
The information contained in this article is the writer’s personal opinion and is provided for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. Read full disclaimer.