A Simple

Pan Asia’s strategy is simple, we seek to secure exploration and development assets with the potential to be positioned in the lowest or leading third of the cost curve and which position the Company for downstream value adding opportunities.

Cost curve positioning is paramount in our decision-making, as assets positioned further up the cost curve are generally more difficult to finance and develop. Regardless of the size or grade of an asset, if finance cannot be secured then the asset is worth relatively little.

The opportunity to move downstream is also very important. In general, value adding mine output will offer the Company better and more consistent profit margins and a larger footprint of customers, and exposure to new opportunities. Although at face value this may sound ‘optimistic’, for many specialty metals, including tungsten and lithium, value adding can be easily incorporated into a feasibility study if the geology, geography and cost environment is right.

Setting geology and metallurgy aside, as these are naturally essential requirements to achieve a low cost curve outcome, this strategy can be achieved by identifying projects that:

  • are located in globally competitive cost jurisdictions, in Pan Asia’s case Southeast Asia
  • are proximal to end user markets, in Pan Asia’s case markets for all process inputs and outputs exist throughout Southeast and East Asia
  • are well positioned to take advantage of downstream development opportunities, in Pan Asia’s case both tungsten and lepidolite style lithium can be value added and the value added output has application in markets throughout Asia
  • are strategically located in a key market with strong economic growth, in Pan Asia’s case the growth profiles of many Asian countries are very strong

For many exploration companies it is not possible to contemplate activities past the mine gate due to geography, geology and or commodity, and/or their cost environment. In general, value adding mine output will offer:

  • better and more consistent profit margins
  • a larger footprint of customers
  • exposure to new opportunities