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VSA Capital Market Movers – Ares Strategic Mining


VSA Morning Miner, 21/05/21

Ares Strategic Mining (CVE:ARS)

Ares Strategic Mining (CVE:ARS) has announced the start of construction of the lumps plant at its industrial site in Delta, Utah. This is being overseen by the company’s Chairman, Karl Marek, an experienced construction project manager and marks an important step as the company approaches first production which we expect to be later this year.

The site is going to host the lumps plant, which is expected to have 60ktpa capacity. This is a bolt on expansion to the production facility presented in the recent conceptual mining plan. Lumps are a high value product which ARS expects to sell at least at cUS$500/t in the current market. This will be the only operation of its type in the USA providing fluorspar direct to the US steel industry and with steel prices at multi year highs the industry is increasing production to meet strong post COVID-19 demand.

In addition to the lumps plant the Delta site will host buildings, offices and bagging facilities. Heavy machinery arrives on site next week to commence concreting. Furthermore, construction is set to commence at the company’s second site at Lynndyl which will host the company’s floatation facility which will produce the clean high grade acidspar product which is included in the conceptual mine plan.

ARS is conducting a number of simultaneous workstreams with geological work also underway to build on the recent geophysics surveys which demonstrated significant potential for further fluorspar deposits across the Spor Mountain license area. ARS is at an inflection point approaching production and being able to realise its potential as the only domestic supplier of fluorspar filling the gap in supply for this Critical Mineral.

We reiterate our Buy recommendation and C$2.17/sh. target price.


Oliver O’Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: oodonne[email protected]
Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

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