CXX clears production hurdle – DFS “imminent” for Panda Hill


Published 14-APR-2016 13:46 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Cradle Resources (ASX:CXX) has proved it can produce a marketable niobium product – clearing the way for offtake discussions, funding, and an “imminent” definitive feasibility study.

The ASX-listed company, which holds a 50% stake in the Panda Hill niobium project in Tanzania, said that it had managed to produce ferro-niobium buttons to industry specification.

The buttons were produced from a previously produced niobium concentrate – one that CXX had confirmed had been produced with a minimum of silicate and phosphate impurities.

The Ferro Niobium buttons produced by CXX

The Ferro Niobium buttons produced by CXX

Niobium is generally used to harden and strengthen steel, and also to improve the steel’s corrosion resistance.

It’s also a fairly tight market, with just three producers accounting for 99% of the market – according to CXX, meaning that the appearance of its Panda Hill project on the scene has the potential to shake up the market.

The confirmation that Panda Hill niobium can be used to produce a market-ready product for steel manufacturers comes at an opportune time for the company, with a definitive feasibility study on a niobium production operation “imminent”.

At this stage, CXX says it sees a 30-year production horizon for the project with construction pencilled in for later this year – first production slated for 2018.

Test results

Key impurity levels for the Panda Hill buttons came in at below both general specification and typical product levels.

The breakdown of impurity levels in CXX’s ferro-niobium buttons

It also confirmed that the buttons have a higher percentage of niobium than is the norm.

The confirmation that a market-ready button product can be produce also has the effect of effectively confirming the flow sheet for the project.

About Panda Hill

The Panda Hill project

The Panda Hill project

Panda Hill is currently home to a resource of 178 million tonnes of niobium-oxide with an average grade of 0.5%.

It is currently being planned as an open-pit and shallow mining asset, meaning that it is essentially a low-cost operation, and project infrastructure is already in place.

According to the company’s pre-feasibility study, the project has a net present value of over $400 million, and a cash operating margin of over 50% at current niobium prices.

CXX is current in a 50:50 joint venture with Tremont on the project.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free