REE Leaders Index down -20%: Medallion, Pele & Ucore counter June trend, up +20%
For all of you Canadians out there — Happy Canada Day today. In spite of the holiday here, I am sitting here with a pile of notes, attempting to make sense of June. While I have managed to place a positive spin on this month’s commentary (I maintain a long term bullish position), there is no question that this was one of those tough periods where I took inspiration where I could get it. One associate reminded me that when the fishermen can’t catch fish, they return to the shore and invest in darning their nets. Seems to me, June was a good month to stay on shore unless you were Medallion, Pele Mountain, Northern Minerals or Mkango Resources — they managed to score a line.
Let’s start with the REE Leaders Index, which fell by 20.58% closing the month at 335.12, 86.87 points lower than the previous month’s level. The good news is that we are seeing a slight upward movement the end of last week, after hitting an all time low on Tuesday, June 25th at 324.
That was an interesting day to hit an all time low, as the REE Leaders Index constituents changed June 24th and 2 companies fell off and 2 were added. The new line-up is as follows according to calculations done by FTSE and submitted to me on June 13, 2013:
We ran the REE Leaders Index Top 15 Charts against the performance of last year’s REE Leaders Index, and I have posted these charts below our advertorial members month in review numbers below.
The ProEdgeWire Rare Earths & Critical Minerals Sponsors Index fell by 10.60% over the month of June. The Indices have been declining but that doesn’t cast any doubt on the future of the REE market. According to a market report published by Transparency Market Research, Rare Earth Metals demand is expected to reach USD 8.19 billion by 2018 which stood at USD 3.93 billion in 2012, growing at a CAGR of 13% from 2012 to 2018. Increasing applications in permanent magnets, rechargeable batteries and catalysts for reducing pollution, electronics, portable equipment and computers are expected to drive rare earth metals demand over the next five years.
Medallion Resources Ltd. (TSXV: MDL | OTCQX: MLLOF) went up by +43.90% in the Canadian market and +38.89% in the US market. Medallion stocks have been consistently performing well since March 2013 and Medallion is working on extracting monazite out of the mineral sands in the Indian Ocean for which it has signed an MOU with Takamul Investment Company (a subsidiary of government-owned Oman Oil Company) on June 20, 2013. Medallion also closed a $400,000 private placement last week, and the funds will be used for working capital and to fund the independent financial and technical study of the Company’s proposed rare-earth extraction facility in Oman (click here).
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Pele Mountain Resources Inc. (TSXV: GEM | OTCQX:GOLDF) witnessed a positive trend throughout the month of June closing the month at 6 cents, +20% higher than the previous months close. On June 10, 2013 the company announced Major Increase in Uranium and Rare Earth Resources at Eco Ridge.
Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) gained +19.37% and +14.58% and in the US and Canadian market respectively. Ucore Rare Metals announced completion of further bulk scale ore beneficiation testing on material from the Bokan – Dotson Ridge rare earth deposit on Prince of Wales Island in Alaska, USA. The current testing improves upon the results of previous ore sorting analysis on bulk samples of lesser size.
Northern Minerals (ASX: NTU) closed the month at 12 cents, +9.09% higher than the previous level. On June 11 Northern Minerals announced initial results from on-going drilling at the Gambit West and Wolverine prospects at its Browns Range project, including the highest grade HRE intersections received to date. Northern Minerals secured a further $4 million in interim funding from an entity controlled by its major shareholder Mr. Yue, Australian Conglin International Investment Group (ACIIG), for the extensive work program underway at its Browns Range Heavy Rare Earth Project to continue uninterrupted.
Mkango Resources Ltd. (TSX: MKA) was up +10.34% with no news. William Dawes, CEO and Executive Director, said in his last interview saidL “…we’ve got a substantial indicated resource (rare earths) and we feel that it is sufficient for at least 20 years of mine life.” (click here)
The US listing of Critical Elements Corporation (OTCQX: CRECF) was also up +9.30% with no news.
June 2013 Rare Earths & Critical Mineral Advertorial Members:
REE Leaders Index annual charts featuring the index constituents performance:
#1: Molycorp (NYSE: MCP)
#2: Lynas Corp. (ASX: LYC | OTCQX: LYSDY)
#3: Orbite Aluminae Inc. (TSX: ORT | OTCQX: EORBF)
#5: Avalon Rare Metals (TSX: AVL | NYSE MKT: AVL)
#6: Greenland Energy & Minerals (ASX: GGG | OTCBB: GDLNF)
#7: Great Western Minerals Group (TSXV: GWG | OTCQX: GWMGF)
#8: Focus Graphite (TSXV: FMS | OTCQX: FCSMF)
#9: Rare Element Resources (TSX: RES | NYSE MKT: REE)
#10: Arafura Resources (ASX: ARU)
#11: Quest Rare Minerals Ltd. (TSX: QRM | NYSE MKT: QRM)
#12: Peak Resources (ASX: PEK)
#13: Ucore Rare Metals (TSXV: UCU | OTCQX: UURAF)
#14: Tasman Metals (TSXV: TAS | NYSE MKT: TAS)
#15: Stans Energy (TSXV: HRE | OTCQX: HREEF)
Tracy Weslosky is the CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading source for investors, entrepreneurs and industry leaders alike, InvestorIntel is ... <Read more about Tracy Weslosky>