 Welcome back to Investor Intel. As we tape this the mining show is one week away. One of the hot topics will be the rare earths and that brings us to peak resources. And with us is Rocky Smith from peak. Hi Rocky. How are you doing? We're doing very well. The rare earths are an interesting market right now given the electric vehicle movement. Which rare earths does peak resources mine? Well we mine all of the rare earths. But the primary rare earths in our operation are going to be NDPR, the neodymium, praisey denium. They represent about 23 percent of our total rare earth composition. What are the other ones? Well in most like most rare earth operations you get about everything. Everything comes. There's 15 rare earth elements and yeah the primaries are always cerium and latinum but but you always get out get all of them. In our case the mids and heavies only represent about 1% of the total. Okay. So they're really not that not worth that much to talk about. And cerium isn't actually a rare earth. It's a rare earth but it's not that rare. It's a boat as plentiful as copper. Yes. Well rare earths aren't really all that rare in the crust of the earth but harder to find them in concentrations that you can actually recover them from. The economics of mining. Now yeah you have two projects underway right now? We have an operation in Tanzania that where the resources and we're looking at starting that up and putting in a concentrator in Tanzania and then taking the concentrate and moving it to T side in the UK and putting a refinery in there will basically crack the concentrate and then separate the impurities and then separate the rare earths from each other. So to my ear it sounds expensive to ship concentrate that far away. Why wouldn't you just build on site? Well the cost of shipping the reagents to the site would be about five times what the cost to ship the concentrate to the reagents. So in this case the availability of a fluoride production and we actually do it as a by-product acid source. So that is not available in Tanzania so if you were to try to process everything in Tanzania then you'd have to ship five tons of reagents to Tanzania for every ton of concentrate that you would have shipped to the UK if you didn't know the direction. Yeah that's not very economic and speaking of economic you put out a project update in October of 2017 with some very impressive numbers I saw a pre-tax NPV of 914 million US dollars. Yes when we got done with the bankable we started really taking a hard look at the numbers and we noticed that we had some high reagent costs particularly in flotation areas in Tanzania so we went back and screened that particular area more diligently and we found that there were some opportunities there so we looked at different reagents that were less expensive which was good but we also found that the reagents that we were using actually performed so much better than the one that we had in our BFS that we were able to bring more material through the same size plant and the effect of which was we got about a 15% increase in capacity through the plant which of course affected the the economics. When do you think that plant will be constructed and operational? Well all the construction is really pending the permits coming through in Tanzania the mining permit coming through in Tanzania and the financial raise so whenever those happen at that point we'll start we'll take us about 15 to 18 months to build both these plants it's a little bit difficult for me to see or say exactly when these other two things are going to happen. We're making some progress with Tanzania it's been since July of last year when they changed the mining line everybody sort of stopped their process but Tanzania is getting ready to start working the backlog of mining licenses and when we get that from the mining minister the deputy mining minister and the commissioner of mining everybody's saying pretty much the same thing but they've got to set this commission and once that's happened they'll start working through this long list of the mine projects over there. So I've done work in South Africa where they have the black empowerment programs is there a similar program in Tanzania? I don't know about the black empowerment program exactly but in Tanzania they do expect a high percentage of employment for the Tanzanian people and they expect us to source as much as we can from the country of Tanzania which I think makes a lot of sense to me that they would try to get as much value out of operations like this as they can. We're back out of that have a good partnership with Tanzania and we've got to do what we can to ensure that they see us as a partner that we're transparent to them so they understand that we're not trying to do anything underhanded. At the same time we've got a responsibility to our shareholders to make sure that the value of the project carries through for them as well. Good mining companies understand the value of CSR and it looks like you've understood that you're putting that into action. Yes, I believe we are. Good. All right. Well, next week is the mining show. If you've managed to make it up from Perth to Toronto, I'd be happy to buy you a beverage. What's the next major milestone we should expect after the mining show from Peak Resources? Well, we're going to be in Tanzania in all of March and in early April we're going to sit down with the Tanzanians and do a workshop with the main people that are going to be making these decisions and start the analysis on the mine license. Aside from that, we should buy in a little while get our environmental permit for the UK. It's been out about two and a half months and we expect to see it in about a month. So that would be a milestone for us. And beyond that, it's just a matter of sitting down, finding a strategic partner, possibly doing some offtake agreements. We have been a little bit hesitant to do offtake agreements because the price has been so low. But as the price comes up, we're starting to look more aggressively towards doing offtake agreements and getting a basis for our financials. Rocky, thanks for your time. That's Peak Resources Trading is P-E-K on the ASX. We'll check in with you in a couple of months. Thanks for your time. Thank you.