Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market Rescued by the Fed Again? - 24th Sep 21
Are Amazon Best Cheap Memory Foam Mattresses Any good? Bedzonline £69 4ft Small Double ECO Example - 24th Sep 21
Evergrande not a Minsky Moment - 24th Sep 21
UK Energy Firms Scamming Customers Out of Their Best Fixed Rate Gas Tariffs - 23rd Sep 21
Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Should School Children be Jabbed with Pfizer Covid-19 Vaccine To Foster Herd Immunity? - UK - 23rd Sep 21
HOW TO SAVE MONEY ON CAR INSURANCE - 23rd Sep 21
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Rare Earth Metals Are Not That Rare

Commodities / Metals & Mining Aug 30, 2011 - 02:11 AM GMT

By: George_Maniere

Commodities

Best Financial Markets Analysis Article           The term Rare earth is an oxymoron. Rare Earths are all around us and indeed are very common. What is rare is to find high concentrations of Heavy Rare earths in a mining friendly area, mines that are the open pit variety, sites that have the basic infrastructure needed for mining (electric and water) and finally mines that have the roads or waterways  to move massive amounts of these earths to separation plants at a cost effective rate. This is indeed a rare combination.


           Until the 1970’s North America were the miners of the world. When the mining companies found that they could outsource the mining to China and quadruple their profit margin they jumped at the chance. From that time the Chinese became miners of 97% of the world’s heavy rare earths. About a year and a half ago the Chinese declared that they would be cutting their exports of heavy rare earths by 50% and to add insult to injury they would be adding a hefty tariff to what they did export. This produced two results. First, it left the rest of the world scrambling to find the heavy rare earths that would be needed to continue the manufacturing of flat screen TV’s, I pads and who knows what secret high tech projects the military  uses these heavy rare earths for. Secondly, seemingly overnight, it created a glut of these companies as worries of the Chinese stranglehold lit a fire under the mining industry. This sent the price of these stocks soaring trough the roof and worse it created a new stable of gurus that used their technical analysis to project prices for these companies and call for ridiculous valuations on these companies. Sadly my free site has seen people wiped out by these “gurus” as they saw a chance to make a quick buck from the fear of a world without the materials necessary for the creation of high tech products.   In the last few months the mania has worn off and these companies have seen their share prices come back to realistic valuations.

           While there are companies that can look forward to impressive gains, the problem in the rare earth sector is that there are 17 different rare earth elements and some are far more expensive than others. Each company must be looked at individually to determine the value of the element that is mined is worth and how quickly each of these companies will be able to get their mines into production. There is a realistic concern that there could be a glut of some of these rare earths as early as 2014.

           After having studied the myriad of companies that have been created and in my opinion there are only two companies that have all of the necessary components to be successful - Tasman Rare Metals (TASXF) and Quest Rare Minerals (QRM). 

Tasman’s Norra Karr heavy rare earth element project in Sweden has been declared a property of "National Interest" under the Swedish Environment Act. This classification is highly significant in that it protects Norra Karr from any land use that may compete with future mining. This definition is based on the strategic value of the asset, the quality of its documentation, and whether the deposit represents a unique, natural asset.

The Swedish Geological Survey (SGU) considered the European Union's (EU) raw materials initiative, proposed to gain long term access to raw material supply for Europe. Rare earths are identified as one of 14 critical metals and minerals for the EU within the next ten year period, and Norra Karr is one of the few potential sources for domestic production. The Norra Karr project is the only NI 43-101 compliant REE resource in mainland Europe.

           Norra Karr is particularly enriched in dysprosium (one of the most coveted and expensive heavy rare earths) and can provide a secure supply to expanding green-tech and high-tech industries for many years to come

My other pick is Quest Rare Minerals (QRM). Quest is located in a mining friendly region of Quebec. Quest Rare is an exploration company focused on the identification and discovery of new world-class Rare Earth deposit opportunities. The Company is led by CEO Peter Cashin and a highly-respected management and technical team with a proven mine-finding track record. Quest is currently working on several high-potential rare earth projects in Canada’s premier rare earth exploration areas. The Flagship project of the company is the Strange Lake Project. The current scope of the project plans for the excavation of HREE material by means of an open pit mining and will provide 4,000 tons per day to a plant that is located in the vicinity of the deposit. While Quest has two other projects the Misery Lake project of north-eastern Québec and the Plaster Rock area of north-western New Brunswick. Quest continues to pursue high-value project rare earth opportunities throughout North America.

           In conclusion, according to Premier Jean Charest, Quebec is more than ready to meet Japan's metal needs. Charest will be visiting Japan to meet with business leaders and politicians to try to persuade them to participate in the ambitious development of northern Quebec.

Speaking to a contingent from Tokyo, Charest said that Japan has major needs. They are a prosperous country. They are leaders in technology, and, like other countries, they have a private sector that has accumulated a lot of money for investment.

Like much of the world Japan has been frustrated by Chinese control over a number of rare earth used in high-tech and military applications and is looking for a new source of supply. Charest said Quebec is a perfect option.

           If my readers want to invest in two companies that have what it takes to be profitable I suggest they take a long hard look at these two companies because no matter how many PR firms are hired by the hundreds of companies, these two companies are the ones that have all of the ingredients to be successful and profitable.

By George Maniere

http://investingadvicebygeorge.blogspot.com/

In 2004, after retiring from a very successful building career, I became determined to learn all I could about the stock market. In 2009, I knew the market was seriously oversold and committed a serious amount of capital to the market. Needless to say things went quite nicely but I always remebered 2 important things. Hubris equals failure and the market can remain illogical longer than you can remain solvent. Please post all comments and questions. Please feel free to email me at maniereg@gmail.com. I will respond.

© 2011 Copyright George Maniere - All Rights Reserve
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in