Appian is pleased to announce a strategic sell down of its equity position to Shenghe Resources, a leading global rare earth company.
Highlights:
- Appian has substantially exited its position in ASX-listed Peak Rare Earths, generating strong risk-adjusted returns for its investors
- Sale of the 90% stake to rare earth minerals major, Shenghe Resources, validates Appian’s ability to identify technically attractive and strategic investments
- Attractive premium realized of 28.3% from the 5D VWAP, and 24.5% from the closing share price prior to the announcement
- Another successful exit in green-linked commodities, with exposure to the growing clean energy generation, storage, and electric vehicles markets which are key areas of focus for Appian
Appian Capital Advisory LLP (“Appian” or the “Company”), the investment advisor to the value-focused Appian Natural Resource Fund LP (the “Fund”), is pleased to announce that it has substantially exited its position in Peak Rare Earths Limited (ASX: PEK) (“Peak”). The Fund, through a solely owned subsidiary, has sold its 19.9% interest to global rare earth group Shenghe Resources Holding Co Ltd (SSE: 600392.SS) (“Shenghe”), generating strong risk-adjusted returns for Appian’s investors.
The sale of Appian’s position was priced at an attractive A$0.99 per share, representing a substantial 24.5% premium to Peak’s shares pre-closing. As a leading rare earth major with a global operational footprint, Shenghe will be a valuable technical and financial partner to Peak going forward. Shenghe’s investment in Peak validates Appian’s thesis that the Ngualla rare earth project in Tanzania is potentially the best undeveloped rare earth asset in the world with significant technical advantages and long-term commercial potential.
Appian has long been an industry leader in being able to identify world-class assets such as Peak, whose critical minerals are required for the development of sustainable technologies such as electric vehicles and renewable energy projects. The sale of this strategic stake in Peak, as well as the premium achieved, reaffirms the attractiveness of the Ngualla rare earth project and its importance to global decarbonization initiatives via the manufacture of permanent rare earth magnet critical for the energy transition.
Michael W. Scherb, Founder and CEO of Appian, commented: “This transaction further validates the success of Appian’s model, with our ability to deliver attractive risk-adjusted returns. The sale to a rare earth major is a strong endorsement of Peak’s world-leading project, enabling it to move on to the next stage of development. The premium pricing also reaffirms our technical and financial strategy, as Appian continues to build its position as the world’s leading private investor in future facing metals.”
For further information:
Finsbury Glover Hering +44 (0)20 7251 3801 / [email protected]
Charles O’Brien, Richard Crowley, Theo Davies-Lewis
Appian Capital Advisory +44 (0)20 7004 0951 / [email protected]
Michael W. Scherb
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 54 experienced professionals with offices in London, Toronto, Lima, Belo Horizonte, Montreal and Sydney.
For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn or Instagram.