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How to buy shares in VHM Limited

Victoria could be the home of a new rare earths producer.

Mining company VHM Limited has already put the foundations for new rare earths and mineral sands production in place. Now, they could advance their venture with funds from a recent ASX listing.

Their flagship Goschen Project lies around 280 km north-west of Melbourne in Victoria’s Loddon Mallee Region. The team’s been exploring for a range of resources across its 2,860km2 of connected land holdings in the area. 

They’ve decided to develop the Goschen mine with an expected life of over 20 years, from which they could extract 413,107 tonnes of total rare earth elements. There’s also a substantial mineral sands resource. This is essentially soil or sands containing high levels of valuable ‘heavy minerals’ that are important to industry such as zircon and titanium. 

VHM’s currently working on engineering designs and plans for phase one of the mine. 

Due to its significance to the Australian economy and creating 500 new jobs during construction Goschen’s received ‘Major Project Status’ from the government. This designation has provided additional support and helped streamline the permitting process.  

There’s potential to build a refinery to separate their rare earth products if all goes to plan in the next stage. This is often a costly operation that involves large amounts of chemicals, but attracts premium prices when compared to mixed options. 

Out of the fifteen rare earths, a group of four are currently most sought after due to their applications in permanent magnets of EVs and wind turbines. This remains the most profitable end-use category for the metals. 

It’s estimated that 87% of the value from Goschen’s basket of rare earth minerals will come from this group of Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb). This translates to them generating about 70% of the project’s revenue.

VMH is available to trade on Stake under the ticker VHM.