How China gained control of the rare earths market.

Recently it has been interesting to see the heightened interest in rare earths and talks of rebuilding the supply chain outside China. Encouraging to see that governments are finally recognizing the strength that China has built up over the twenty plus years that have in my experience — been both strategic and deliberate.

I lived in Asia for 10 years and have dealt with China and Chinese plants as a rare earths’ expert since 1995 and spoken regularly on how this really happened. Asian companies and governments do not look 3 months down the road but look 10-20 years or longer into the future. Granted it is easier in an environment where the State is actively supporting certain sectors but let’s look at the results. China, Japan and SE Asia now dominate numerous industries, including rare earths; while the US manufacturing base has been replaced by service industries, and we are wondering how and why we got here?

Flashback to 2 significant events in the late nineties, which speaks volumes as to the stepping back from rare earths in the USA.

The first example is Magnequench, who had a monopoly position in bonded rare earth magnet alloy. When it was spun out from GM a group purchased this dominant company in 1995. Two of the shareholders were Chinese companies and they held 62% of the new company. Interestingly, the heads of the two Chinese companies were sons-in-law of Deng Xiaopeng, the former leader of China. Why is this interesting? Deng Xaiopeng is known for his comment in the 1980’s “The Middle East has oil, China has rare earths.” This clearly raised the importance of rare earths in the Chinese psyche to a level well beyond the value of the industry. The US government body CFIUS, the Committee on Foreign Investment in the United States, allowed this acquisition to proceed with no limits on a company, that at the time, is reported to have been supplying 85% of the alloy for magnets being used in US precision guided missiles. Obviously, China viewed this as a strategic acquisition.

The next was the closure of Mountain Pass in 1998, for what was reportedly a failure to advise the EPA of an issue on site. At the time it was producing roughly 25% of the world’s rare earths. I remember sitting in an office in Toronto and speculating with others that prices should go up as a result. That did not happen as China stepped in and filled the gap in under six months. This also took away Magnaquench’s domestic source of Neodymium (Nd).

This was followed by Vacuumschmelze closing its magnet plant in Kentucky in 2003 and relocating to Germany and Slovakia. In 2004 Magnaquench closed its Indiana plant and relocates to China. This is followed by Hitachi closing its plant in Michigan in 2005. So, in a period of 3 years the major magnet producers left the USA. Electron Energy produces SmCo magnets in the USA, which are interesting to the military as they cannot be affected by Electro Magnetic Pulses (EMP). These magnets are not as strong as NdFeB but have a stable minor part of the magnet market. Overall the USA can use a percent of its defense budget to implement a strategy using existing assets in the USA and add some additional manufacturing to complete the magnet supply chain over 3 to 5 years.

But what about the future? An area that needs to be developed further for the future of rare earths outside China is expanded research and development of new applications utilizing some of the elements with excess supply. An article I read recently written by James Kennedy last year indicates that China filed its first rare earths patent in 1983. It passed the USA in rare earth patents filed by 1997. According to the report by August 2018 China had accumulated 23,000 more patent filings than the USA. A telling tale of focus and effort. Research labs like Oak Ridge are looking into rare earths, amongst other elements, but further emphasis is necessary.

So not only do we need to look at producing rare earths outside China, but more emphasis is needed in finding uses for them. Cerium (Ce) and Lanthanum (La) will remain, in my opinion, around $2/kg (< $0.90/lb.) for the foreseeable future and Yttrium (Y)  along with Samarium (Sm) will also maintain a low price as production is driven by Neodymium (Nd) and Praseodymium (Pr) resulting in imbalances in Ce, La, Sm and Y supply versus demand. This should be an advantage for long term application development.




738 Billion Defense Bill plus U.S. and Canadian Critical Materials Memorandum Equals Pivotal Year for Rare Earths

On Friday, we received a call from the CBC requesting more data on how the recent Fiscal Year 2020 National Defense Authorization Act (NDAA) that was passed on December 17th would impact the North American rare earths market. This combined with the recently signed memorandum of understanding (MOU) for critical materials signed on December 18th between the U.S. and Canada to reduce our dependence on Chinese rare earths and from all vantage points, Jack Lifton is correct in saying “2020 looks to be a pivotal year for rare earths”.

This timely passing of a “massive $738 billion defense authorization bill” by both the U.S. House and Senate, unquestionably holds ramifications for those of us following the North American public markets. In fact, it should mean that the leading players in this market should not only experience an increase in market valuations effective immediately, but this will inevitably result in much needed financings to achieve a successful rare earths supply chain in North America.

Jack Lifton commented that “The 2020 National Defense Authorization Act, which authorizes funding for the U.S. military, has expanded its recognition of the critical importance of the rare earths from the FY 2019’s mandate that the U.S. military only buy non-Chinese rare earth permanent magnets to the requirement that the U.S. Defense Department develop a plan and implement a strategy to discover or develop and integrate each of the necessary industrial components into a total domestic American rare earth supply chain for any and all rare earth enabled products utilized by the U.S. Dept of Defense.” He adds: “This is the greatest opportunity to revive a non-Chinese rare earth industry, since the movement to China of that industry in the last years of the twentieth century.”

In reviewing the 2020 NDAA, we have cut out the relevant excerpt from clause (c) listed under Section 850 titled “Acquisition and Disposal of certain Rare Earth Materials” for our readership.

NDAA Excerpt:

(c) REPORT ON SUPPLY CHAIN ISSUES FOR RARE EARTH MATERIALS.—Not later than 180 days after the date of the enactment of this Act, the Administrator of the Defense Logistics Agency, in coordination with the Deputy Assistant Secretary of Defense for Industrial Policy, shall submit a report to Congress assessing issues relating to the supply chain for rare earth materials. Such report shall include the following:

(1) An assessment of the rare earth materials in the reserves held by the United States.

(2) An estimate of the needs of the United States for rare earth materials—

(A) in general; and

(B) to support a major near-peer conflict as described in war game scenarios in the 2018 National Defense Strategy.

(3) An assessment of the extent to which substitutes for rare earth materials are available.

(4) A strategy or plan to encourage the use of rare earth materials mined, refined, processed, melted, or sintered in the United States, or from trusted allies, including an assessment of the best acquisition practices (which shall include an analysis of best value contracting methods) to ensure the viability of trusted suppliers of rare earth materials to meet national security needs.

While the above will inevitably be the catalyst for finally addressing the supply chain and inevitable sustainability issues in North America around these technology metals, I agree with Alkane Resources Ltd.’s (ASX: ALK | OTCQX: ANLKY) Managing Director Nic Earner who wrote “It is good to see continued moves by the US Government to establish independent supply. We look forward to seeing this lead into purchasing and commercial arrangements with US Defence suppliers in time.”

I have reached out to my favorite and most knowledgeable players in the industry with a request for them to provide practical feedback on what this means for our sector and how it will impact us in 2020. Their comments are below, and I have added everyone to the commentary section so you may respond directly to them.

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“In a complementary initiative, on December 18th, Canada and the U.S. signed a Memorandum of Understanding confirming Canada’s participation in the U.S.-led Energy Resource Governance Initiative (ERGI), part of a multi-pronged strategy by Washington to break free of China’s near-monopoly on so-called critical energy minerals essential for high-tech industries — producing everything from lithium batteries for electric cars, to smartphones and computers, wind turbines and defense assets. There are great economic benefits for Canada if our natural resource wealth and industrial capabilities can be adapted toward creating both new primary mineral supply sources and the value-added derivative products needed for electric vehicles as well as other clean technology and defense applications. I look forward to learning more about the Governments’ plans and I know that industry leaders and technical experts across the full supply chain can contribute toward creating collaborative and innovative solutions.” — Ian London, Chair, Chair, Canadian Rare Earth Elements Network (CREEN)

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This year should be the culmination of nearly 10 years of effort to move the U.S. government from endless studies and research projects to actually investing in the production of rare earth materials needed to support the Department of Defense, which should serve as a catalyst to long-term commercial viability for the industry. The DOD currently has three active Requests for Proposal to invest in establishing the capability to separate light and heavy rare earths through two new facilities, and the establishment of an inventory of NdFeB magnets. With the continued support of Congress and the Pentagon, 2020 should be the year that separates the wheat from the chaff in the prospective rare earth market, as only the most viable prospective producers of rare earths will be selected for government funding – the time for hype and pipe dreams is over as we move to an era of actual investment in production.” — Jeff Green, President, J.A. Green & Company

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These two initiatives are essential to attract and renew investment interest in the rare earth sector. Search has participated in the requests from both the US and Canadian governments, which identifies Search Minerals as a key participant in the North American rare earth supply chain. It is also helpful that Canada rare earth resources are considered ‘domestic source’ for these additional funding opportunities.” – Greg Andrews, CEO, Search Minerals Inc. (TSXV: SMY)

Dr. David Dreisinger, Vice-President, Metallurgy of Search Minerals adds: “Since our inception, we have met our objectives to have a proven processing technology which has low capital and operating costs, environmentally friendly and scalable. The new initiatives could help fund separation facilities or technologies in North America which could process our concentrate into individual oxides. Our resources contain both light and heavy rare earths required for many applications deemed critical under NDAA. The initiative allows the ability for new government funding opportunities required to advance the supply chain initiative, ie offtake agreement or direct investing.”

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The 2020 NDAA is an excellent additional step in a process that will ultimately lead to the establishment of a rare earth supply chain in the United States. Various agencies in the Department of Defense are now also beginning to put serious funding into the establishment of a domestic supply chain. Texas Mineral Resources and its funding and development partner USA Rare Earth Inc. is not waiting to take action. Rather, it has proactively established a Colorado based rare earth pilot facility that will ultimately be transported to Texas and ultimately envisions Texas as the center of a domestic rate earth and critical mineral supply chain.” — Anthony Marchese, Chairman, Texas Mineral Resources Corp. (OTCQB: TMRC)

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“The NDAA will bring focus on the rare earths sector and some much-needed funding to implement a North American strategy for rare earths. Six months is a very short time to summarize the state of the industry unless they have multiple inputs from those with knowledge of the space. Hopefully they will look at investing in the magnet supply chain, which needs rebuilding for the production of neodymium magnets (NdFeB). This initiative should build more confidence in the investment side and raise the profile for projects that can go into production in a short period of time.” – Alastair Neill, Trinity Management Ltd.

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“Trillions of dollars of all-important products are dependent on one dominant group which, in the past, has used rare earths for economic, political, social and technical gains. The United States’ most recent vocalized concern over threatened or possible disruption of rare earth supply is once again drawing attention to the potentially tenuous situation and the importance of the companies addressing this situation. Prudent business practice dictates the use of multiple suppliers particularly for key inputs. That said, the sourcing of rare earth raw materials in the United States and its allies can be arranged in the not too distant future, however, the paramount issue is establishing and implementing the technical know-how to process the raw materials into refined rare earths and then into useful applications and products. Processing capability is of paramount importance and is fundamental to unlocking supply dependency and will take considerably longer to implement due to the unique characteristics and the technical aspects of the rare earths.” — Tracy A. Moore, CEO of Canada Rare Earth Corp.

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“Lynas welcomes the U.S. Defense Department’s plan to encourage the development of a rare earth supply chain in the United States, or with trusted allies. As the world’s second largest Rare Earths producer, Lynas is well positioned to help the establishment of a sustainable and resilient rare earth supply chain from mine to magnet and to energy efficient electric motors.” – Lynas Corporation
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“Bringing together the NDAA, the Australian Government’s AUD4.4bn Defence Export Facility being made available to rare earth development projects, and joint U.S.-Australia critical minerals initiatives, it’s clear that not since the Government of Japan helped fund Lynas in 2011 to build their Malaysian process plant, have we seen Western governments, including those of the EU member states, focus, co-operate and now act on the issues that have allowed China to effectively take control of the rare earth market over the past 20 years. These efforts could result in further diversification (beyond Lynas) of NdPr and heavy rare earth supply, including by Arafura Resources, into ex-China NdPr metal-NdFeB magnet alloy/magnet manufacturing and the downstream clean energy supply chain.” — Richard Brescianini, Arafura Resources Limited
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“Medallion Resources has been focused on the development of rapid ‘go to production’ rare earth business model and proprietary extraction process using by-product monazite feedstocks. These are available throughout the Americas, Australia and Southern Africa. We recently announced the start of US site selection process for an initial REE extraction plant with capital requirements that are a fraction of traditional REE mining and processing operations.” — Donald Lay, President & CEO Medallion Resources



Taking the Small Cap Secret to the Street.

Whispers on Bay St, C-level managers maintain strong composure, but behind closed doors the consensus is the same: the small cap industry is in trouble. Furthermore, we will need to collaborate towards addressing the real issues with creative solutions on how to build a stronger market where true entrepreneurs flourish.

With Canada’s main stock index hitting a new high on Thursday and the S&P/TSX composite index hitting an all-time high of 17,120.90 in earlier trading last week, why are the breadcrumbs from this financial feast not making it down the food chain to the hard working small cap teams?

A particularly astute market consultant from Montreal, Jerome Cliché replies to my requests for feedback on this issue matter of fact, with “This is the worst I have seen the small cap market in 25 years.”

He then goes on to add, “Warning signs that the TSX Venture was ready to capitulate have been all around us for some time as the volume and value of shares traded continue to crater.” Leaning in closer to home, we published a story last week titled, Are small cap stocks on the TSX-V set for a holiday rally? as we monitor stocks flatlining despite achieving relevant milestones.

Attempting to posture optimism I enjoyed MI3’s Mario Drolet’s take in Matt Bohlsen’s story with “…remember the junior market is a catch up market.….I am expecting a Christmas rally and we should start seeing some inflows of money into the market soon..” Unfortunately, he also goes on to confirm market indicators for concern when he adds: “we are all seeing the TSX-V and CSE Index near their all-time lows.”

18-years in the small cap industry myself, I am sorry to say that this is indeed the worst year I have seen, 2019 is starting to make 2008 look like a joy ride. In my opinion, our portfolio managers are now directing their clients into only top performance stocks in the market with the angle being to minimize any risk for Baby Boomers to lose money.

Okay that makes cents, but what about the illustrious and rarely covered Generation X’s to which I am a part of? Where are we hiding? Bruised from blockchain, fintech and cannabis market highs and lows, how do we rectify these parallel realities without an inevitable market crash, as these small caps cannot sustain their dream on air.

I reach out to Peter Clausi, a public market consultant that we often call for questions on compliance, and when we need to refer a company seeking either to list or would do an RTO, he responds quickly with: “Some of the blame can be directed at the portfolio robo managers. Their goal is not to outperform, but rather not to underperform. As long as the return is not below its index, the robo manager has done its job, even though this may be a real loss when measured against inflation. Mediocrity is being rewarded. it’s like the old saying, nobody ever got fired for buying IBM.”

Speaking to dozens of small cap CEOs weekly, one tech principal tells me — “I haven’t paid myself in over a year”, another junior gold CEO explains how he no longer even watches his trades as he finds it too demoralizing. One of my favorite IR firms in Vancouver sends me a note on Friday that reads, “Hope all is well there, its s**t town here – and by that, I mean the markets…”

I respond with it’s too everyone’s benefit to see performance rewarded through effective market valuation. But are we optimists living in a false reality?

Jerome Cliché hits back hard with some year-over-year data (June 30th data) starting with the volume trading for small caps down -27%, value traded down -40% and number of trades down -31% for the year.

What do I think? Obviously moving forward believing that this is an M&A smorgasbord for a practical investor ripe to make a deal, a banker from Zurich confirms my perspective. What’s the ole rule of forecasting — make as many forecasts as possible and publicize the ones you get right? Not making a forecast here but reminding our readers of our trending section that monitors what are readers are reviewing most over the last 30-days. And based on this list, which Sharron Clayton tweets out weekly, we seem to have an increasing interest in electric vehicles and everything in them (lithium, graphite, cobalt); we continue to wait for the President’s Nuclear Fuel Working Group on how we plan on responding to our uranium market as that is a market over ripe for rewards.

And holy heavens, if you’re not into rare earths, I agree with Greg Andrews of Search Minerals Inc. (TSXV: SMY) that I spoke with earlier today — if you’re a market timed investor, and if you don’t have a rare earths company in your portfolio, your going to wake up one morning, see a Trump tweet – blink, and you will have missed another hockey stick this niche sector is known for.

We have industry expert Jack Lifton, the Godfather of Rare Earths, the man who coined the term “technology metals” doing interviews, backed by industry expert Alastair Neil — we are leading the market for coverage here on InvestorIntel for critical materials, expect some surprises this week.

On Monday and Tuesday of this week, Matt Bohlsen is going to do a part I and II on some gold companies we are watching. All presently trading at market valuation discounts, I continue to love this sector and agree with Mario Drolet who writes “lookout for a rebound on precious (gold) and base metals (copper, nickel) and strategic metals like rare earths.” He is not the only one anticipating a rally, so enjoy this time to do your due diligence and see what producers are eyeing what.

And then of course there are esports, and Ben Feferman’s columns continue to drive into the top 10 as we all seek millennial generation guidance on what to watch…and play. Speaking of learning more about this sector or catching up! The Business of Esports Investor Conference is on Monday, December 2nd from 1230-530 and while we know its last minute — if you can make it, click here to register, Ben and AMUKA Esports will be hosting this informative business and technology seminar and the 1st 3 people who email me at info@investorintel.com, will receive a complimentary pass!

Then there’s AI and technology (see our Top 10 below, or click here to access our Trending section) and we are working with Chris Thompson of eResearch who is sharing his valuable insight with our audience. Obviously, we welcome your comments, your tweets and ideas. After all, we all thrive in a market where entrepreneurs are rewarded for taking a vision for the future forward and making our lives better! Stay tuned, we are following the small cap market challenges closely —.

  • #TrendingNow #1 on @Investor_Intel – Read: Electric #pickuptrucks are coming soon – The #Tesla pickup reveal is on November 21 http://bit.ly/32Fquet #Cybertruck #Evs
  • #TrendingNow #2 on @Investor_Intel – Read: The US #uranium industry awaits #PresidentTrump’s #NuclearFuel Working Group findings bit.ly/2lfoABI #POTUS
  • #TrendingNow #3 on @Investor_Intel – Read: Jim McKenzie, President & CEO of #Ucore, stated: “Current international events suggest that the U.S. is now on the threshold of a significant disruption to the domestic #REE supply chain” http://bit.ly/3231n4R $UCU.V $UURAF #rareearths
  • #TrendingNow #4 on @Investor_Intel – Read: “Only time will tell if #HochschildMining’s #rareearths Chile bet will pay off, or would they have been better off partnering with other safer country projects in Australia, USA, or Canada” bit.ly/2N01rOF #REE
  • #TrendingNow #5 on @Investor_Intel – Read: The “Godfather of Rare Earths” Jack Lifton to host a new InvestorIntel #criticalmaterials’ market series http://bit.ly/37wakHR #rarearths #REES  @JackLifton
  • #TrendingNow #6 on @Investor_Intel – Read: #HarteGold – Where to from here? http://bit.ly/378LCNU #Gold @HarteGold $HRT
  • #TrendingNow #7 on @Investor_Intel – Read: The #rareearths racehorse #investors are betting on. http://bit.ly/2OH06Mv #REE #scandium
  • #TrendingNow #8 on @Investor_Intel – Read: 7 million #gold ounces and 4 new gold-#copper porphyry targets nearby sees huge upside potential http://bit.ly/2O5jMup @EuroSunMining $ESM
  • #TrendingNow #9 on @Investor_Intel – Read: What do you think will #Astralis have a great chance of winning the 3rd season of #IntelGrandSlam, a cash prize of an additional USD$1 million? http://bit.ly/2r2X8JU #eSports
  • #TrendingNow #10 on @Investor_Intel – Read: The revolutionary #AI technology that works for #generators, #electricmotors, and also for #batteries http://bit.ly/33FtgSn $EXRo $XRO.C @Exro_XRO #lithiumion



Taking Tesla head on.

Elon Musk must be hearing the sounds of horsepower of the big boys in the automotive industry in his dreams or possible nightmares. Ford has announced the Mustang MACH-E. Porsche has announced its entry level Taycan 4S and VW, among other German producers are actively moving into the EV space. VW has indicated it plans to sell 3 million units a year. This compares to Tesla’s total sales of 816,155 since its start of production in early 2013 until the end of Q3, 2019. Recent sales are close to 100,000 units per quarter. (1). In addition, the Japanese and other North American producers are actively entering the EV market.

Now granted Porsche is just entering the EV space and at a much higher price than the Tesla S, but then again Porsche has not tried to sell to everyone. The Tesla S has a better range but at the end of the day when one is putting out 6 figures for a car, a Porsche is still a Porsche and a history of producing cars that people dream about.

On the other end of the scale is the Tesla Y, to be released next year based on the Tesla 3 platform, and Ford’s new entry, the Mustang MACH-E. Projected horsepower is 332 for the Ford and just over 400 for the Tesla Y. The Ford is expected to be just under $44,000 compared to an expected price of $48,000 for the Tesla Y base model. However, the Mustang will have a tax credit of $7,500 for the first 200,000 units. We will have to see if the Mustang brand will carry weight going forward since the vehicle does not carry any of Mustang history or cache, other than the name.

It will be interesting to see how the EV market evolves as more and more options enter the game. The difference is That Tesla is a ground-breaking, visionary startup but some of the fit and finish issues as shown on YouTube may be an Achilles heel. The new entrants have a long history in automotive manufacturing and name recognition.

But wait. Elon Musk has just made a foray into the heart of American vehicles. The pickup. Just revealed is an eye-popping, radical design that looks like a pyramid on wheels. A stainless-steel body that claims to stop some small arms fire and unbreakable glass that cracked during the reveal. Ooops. But then Apple had some glitches on a launch. The pricing is competitive to a Ford-150. It is a question if the radical design will be accepted in the market. Elon has said that a more traditional design may be possible but remember when a Hummer was seen as a status symbol. Time will tell if this leap into the future (aka “the DeLorean”) is a flash in the pan or a visionary move.

Tesla has announced gigafactories in Berlin and Shanghai so getting into the backyard of two significant markets and home of major competitors like BYD, Porsche, BMW among others. So, what is the future of Tesla? To build the new factories will take a lot of capital. That will mean raising long term debt which will reduce the earnings per share of the company. Obviously, Elon has a lot of balls in the air, including his space ventures. One option would be to leave the making of vehicle platforms to those who have been doing it for decades and focus on what they do well. Batteries and drivetrains. Then again this does not take into effect the Trump-factor, but we will see what the future holds.




Are small cap stocks on the TSX-V set for a holiday rally?

Canadian small caps, represented by the TSX Venture (TSX-V) exchange, have had a very tough past two years and are way under-performing the Canadian large caps (TSX exchange). We ask the question why? And does this make Canadian small caps on the TSX-V a contrarian recovery play?

Comparing the two main Canadian indexes below we see the 5 year cumulative returns shown on the charts below. Clearly the TSX Composite Index (TSX large caps) has outperformed returning 15.11%. The TSX-Venture Composite Index (TSX-V small caps) has performed very poorly, especially since January 2018, returning a negative 28.94%. The chart below also shows last time the TSX-V fell heavily we saw a large recovery rally in 2016.

TSX large caps (blue) versus TSX-V small caps (red) – 5 year price chart

Source

What are the main differences between the TSX and the TSX-V?

The most obvious is size, with the TSX stocks having a bigger market capitalization. The next key difference is the TSX is heavily weighted to financials and energy, whereas the TSX-V is heavily weighted to the materials (mining) sector (29.15%).

TSX-V sector weightings and Top 10 holdings

Why are the TSX-V (small caps) under-performing, especially in the past 2 years?

There are a number of reasons for the under-performance. First and foremost is the under-performance of the materials (mining) sector. Incidentally, the trade war started about 2 years ago, and the electric vehicle (EV) metals boom peaked ~2 years ago (January 2018). We have also seen a slowdown in global growth in 2019, which is a negative for much of the mining sector. Gold is the exception, and palladium has been another exception due to tougher emission standards arriving in 2020.

This means we have seen the TSX-V taken down by a large downturn in the mining stocks, especially those related to the trade war and China, such as the base metals and EV metal miners. We also saw a considerable pullback in the cannabis stocks the past year after their previous boom.

Does this make Canadian small caps on the TSX-V a contrarian recovery play?

The answer is mostly yes, if you believe we will soon see a trade war recovery and a strong China. China consumes almost half the world’s metals, so a stronger China is good for Canadian metal miners.

Investorintel asked Mario Drolet (President of MI3 Financial Communication and 25 year trading veteran) to share his thoughts, and this is what he said:

‘’Despite the fact that the big market is continuing to make new record highs.….Dow at 28,000.….The small-cap stock index and many sectors has been anemic..…but remember the junior market is a catch up market.….and I am expecting a Christmas rally.….(mid-November to December) and we should start seeing some inflows of money soon into the market..…We are all seeing the TSX-V and CSE Index near their all time lows..…the cannabis and blockchain sectors pullback have accentuated the downward movement and have not helped the cause.…Lookout for a rebound on precious (gold) and base metals (copper, nickel) and strategic metals like rare earths.‘’

I would agree with Mario’s conclusions. If we get a trade war deal and global growth starts to pick up again (including China EV sales), then we should see better sentiment to small caps (especially the EV and base metal miners), and the TSX-V could be set for a brilliant Christmas rally.




The “Godfather of Rare Earths” Jack Lifton to host a new InvestorIntel critical materials’ market series

Expert Jack Lifton to explore how the American recent policy shift has inspired a rare earths revival and a rebirth of a domestic rare earth permanent magnet supply chain

Toronto, November 4, 2019 — InvestorIntel, a leading online source of trusted investor information, is pleased to announce Jack Lifton as the new host for leading coverage of all related rare earths, critical materials and technology metal interviews in this geopolitically charged sector.

Adding significant depth of knowledge and expertise to the bench strength of the existing InvestorIntel Corp. team, CEO Tracy Weslosky comments: “Rare earths are attracting half of our viewer interest on InvestorIntel.com, providing strong indicators that the sector is attracting investor and capital market industry. Jack was there first calling the rare earths market in 2008, just before the market exploded in 2009-2010, so of course I speed-dialed the ‘Godfather of rare earths’ to ask him how fast he could bring us all up to speed on what is ‘real’ in the market coverage. Instead of just interviewing him, we felt we would all thrive if we had him interview the industry. We were exceptionally delighted when the expert who coined the term ‘technology metals’ agreed to lead the charge for market updates. Jack’s interviews will unquestionably be the most informative interviews in the industry, published on InvestorIntel.com, YouTube, and redistributed through iTunes, Spotify and Amazon Google podcast channels.”

Recently publishing How the American recent policy shift has inspired a rare earths revival Jack writes that the American Federal Government’s recent policy shift to require national self-sufficiency in critical metals for technology for the Defense Department, the interest is now on whether total domestic supply chains can be constructed or revived, he adds that: “the Chinese costs are rapidly rising to first world levels, and that this fact as much as any other is driving the rebirth of a domestic total North American rare earth permanent magnet supply chain.”

Jack Lifton is the CEO for Jack Lifton, LLC, a consultancy he began in 1999 upon his retirement as the CEO of an OEM automotive supply company specializing in process chemistry and metals trading. A consultant, author, and lecturer on the market fundamentals of technology metals. Technology metals is a term that he coined to describe strategic metals whose electronic properties make our technological society possible. These include the rare earths, the platinum group metals, lithium, graphite and most of the rare metals and materials.

A member of the Minor Metals Trade Association, Jack is an advisor to the Malaysian Academy of Science in Kuala Lumpur, and he is a member of that Academy’s Rare Earth Task Force. He is also a member of numerous professional societies and is a frequent speaker at both professional and industry events on both the markets for technology metals and materials and on the use of new and newly applied technologies to the extraction, refining and fabrication of rare metals and materials.

About InvestorIntel Corp.

InvestorIntel.com is a leading online source of investor information that provides public market coverage for both investors and industry alike. Offering coverage of emerging markets and investment opportunities to discerning investors, InvestorIntel is considered an online influencer in market coverage, analysis, videos and podcast reports and is based in Toronto, Canada.