Peak Resources Ltd. updated the bankable feasibility study for its Ngualla rare earth project in Tanzania based on a lower price deck for rare earths.

The update is based on prices for neodymium-praseodymium oxide at US$77.50 per kilogram, lanthanum oxide at US$3.70 per kilogram, cerium oxide at US$2.20 per kilogram, and SEG mixed heavy oxide equivalent at US$8.00 per kilogram.

At the current rare earth prices, the net present value, discounted at 10%, dropped to US$444 million with a 22% internal rate of return, the company said Oct. 12.

The process optimization work at the project completed in late August estimated net present value, discounted at 10%, of US$579 million with a 24% IRR.

The average annual operating margin is now expected at US$150 million, compared to US$174 million previously.

The total capital cost and average annual operating cost for the operation will remain the same at US$365 million and US$91 million, respectively.