"We believe Kangankunde represents a unique opportunity to prove up and develop a rare earths project of potentially global significance."

Asimwe Kabunga

CHAIRMAN, LINDIAN RESOURCES

November 29, 2022

What attracted Lindian to the Kangankunde Rare Earths Project?

We believe Kangankunde represents a unique opportunity to prove up and develop a rare earths project of potentially global significance. While we are still in the early stages of development, research carried out at Kangankunde to date has shown the site is highly prospective for extensive rare earths mineralization with strong grades. In that context we’re excited to get started and continue working effectively with all stakeholders to build Kangankunde into a leading Malawian resources project.

What are the advantages of your diversified portfolio?

We hold the view that while the structural commodity bull market will remain in place over the medium term, building direct exposure to different commodities is an effective way to generate consistent earnings over time. While a diversified asset base remains a key component of our strategy, we are also selective about quality projects that meet our set of criteria and where we can add value by putting the right experts and management teams in place to develop them successfully.

What are the challenges and opportunities associated with being a new player in Malawi?

Our engagement with the Kangankunde project has required us to work directly on the ground in Malawi with policymakers, legislators and regulators over a number of years, along with the asset vendors. As an ASX-listed company headquartered in Australia, the challenge for us has been to execute on our commercial objectives while also ensuring that we strictly adhere to the requirements of operating in a foreign country. We view the project as an opportunity to create value for all stakeholders and play a key role in the emergence of Malawi as a globally recognised mining jurisdiction.

How is your strategy in the Guinean “Northern Corridor” evolving?

The Northern Corridor is the centrepiece of Lindian’s long-term bauxite development strategy in Guinea. Our goal is to build an infrastructure framework which connects the company’s Tier-1 bauxite projects with efficient transport logistics, comprising both in-country railway networks and shipping ports for export. With the location of our projects, Lindian is ideally positioned to benefit from the significant infrastructure investments that have been made in Guinea over recent years, which have now unlocked two high-grade bauxite provinces in Sangaredi and Boffa-Santou-Houda.

The recent Joint Venture agreement between Rio and WSC is a great example of how Guinea continues to mature as a mining and investment jurisdiction. Importantly for Lindian, we think it will also act as a catalyst for further investment by showing that co-development solutions for multi-purpose and multi-user infrastructure in Guinea is now possible.

Can you help us better understand the current fundamentals for rare earths?

Longer-term, researchers globally have been consistent with their forecasts that demand for rare earths is expected to remain robust, particularly for elements used in the production of magnets, which are a key component of electric vehicle manufacturing. As an example of near-term market dynamics, ASX-listed company Lynas Rare Earths recently announced a record annual profit for the 2022 financial year where it received an average price of A$60.3 per kilogram for its rare earths oxides - more than double the price received in the previous year (A$29.8 per kilogram).

Could you comment on the company’s outstanding performance on the ASX?

We have seen a noticeable response from investors following Lindian’s acquisition of the Kangankunde project, which was formally recognised in August 2022. Accompanying the transaction, Lindian also completed two share placements during the year at a significant premium to the previous closing share price which has also contributed to the company’s strong recent performance on the ASX.

Do you have a final message?

For Lindian Resources, the next 12 months mark a particularly exciting juncture with respect to the ongoing development of our asset portfolio. Personally, my involvement with Lindian goes back more than five years now, and over that time my strategic vision has remained the same – to identify compelling resource exploration assets and bring in the right experts and management personnel to develop those assets in a way that benefits both our investors and the jurisdictions in which we operate. I think we are on the right track with that strategy, and I’m looking forward to working directly with our team and all relevant stakeholders to further unlock the value of our asset portfolio.

 

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