May. 6 at 5:08 PM
$APAAF Rare Earth Americas (REA) is set to IPO on the NYSE tomorrow at
$19 per share (the high end of their valuation range). Anticipated market cap is somewhere around
$400M USD. The cash generated from the IPO is for continued exploration of its 2 main projects in Brazil: the Constellation Project and Alpha Project. Both projects focus on ionic clay but lag further behind Appias PCH in terms of exploration, evaluation, and metallurgical studies. A tartget PFS date for either REA project is yet to be announced indicating both projects are a year or more behind Appia/Ultra's PCH project (the PCH PFS is anticipated before year end with an updated MRE within weeks).
REA's market cap is anticipated to be 20x greater than Appias for projects that lag behind by end of day tomorrow. Appia's 25% stake alone in Ultra, should it IPO at a similar market cap, would justify a market cap around 5x from current levels.
APAAF remains under the radar and significantly undervalued