Kingsnorth, Lifton and Molycorp rally interest in rare earth market
Crossland Strategic Minerals’ valuable Malaysian links moves stock +55%, Great Western Minerals gains +21.43%
InvestorIntel’s Rare Earths & Critical Minerals Week-in-Review: The market sector experienced a slight decline last week as the REE (Rare Earth Elements) Leaders Index (Bloomberg Ticker: REEL) fell marginally from 403.70 points to 395.75 points, down -1.98% for the week; while the InvestorIntel Rare Earth & Critical Minerals membership was flat -0.93% for the week ending August 9th. Industry experts Kingsnorth and Lifton forecast REE commodity prices to rise as customers – from automakers to robot builders – increase their rare-earth purchases, coupled with China’s expanded efforts to curtail illegals production. China’s Ministry of Industry and Information Technology launches a three-month campaign this week to crack down on the illegal exploration, manufacturing and distribution of rare earth elements, serving as further evidence that unauthorized Chinese REE production will continue to tighten.
InvestorIntel highest reviewed articles were all about sector recovery and my email inbox was full of “please clarify which REEs will be in demand, and more supply & demand data requests.” Leave it with us, we will have updates on both in the next week and a half and I did 3 interviews myself from China to Perth to Denver on this matter yesterday.
Professor Dudley Kingsnorth’s bullish position on REE markets followed by Jack Lifton says ‘worst is over’, rare earth recovery imminent lead last week’s viewership. Molycorps Q2 earnings and Alessandro Bruno’s ‘silver lining’ commentary followed by our special guest editorial by Dan McGroarty on the recent impact of regulators on the strategic materials sector, the Crossland Strategic Metals feature on — and Robin Bromby’s update on Arafura being the next REE miner (Arafura was up +5.26%) lead the readership charge for the week of August 2-9th.
Speaking of Crossland Strategic Metals Ltd. (ASX: CUX) – Crossland jumped significantly, up +55% on two announcements. On August 6th, the Board announced that it had appointed Mr. Sia Hok Kiang as a Director. That same day, Crossland announced that Mr. Sia will also take a placement of $1.2 million in two tranches. Crossland believes that Mr. Sia’s vast experience will be instrumental in developing and delivering early cash flow from their Charley Creek Creek Alluvial Rare Earth Project.
While no news was announced last week, Great Western Minerals Group Ltd. (TSXV: GWG | OTCQX: GWMGF) went up +21.43% in New York and 6.67% in Toronto. Great Western has witnessed a consistent rise in its share price since early July when the company released a couple of major announcements. In July the company announced that its UK-based subsidiary, Less Common Minerals Limited, has successfully produced neodymium metal from oxide, using an electrolytic reduction process; as well as the company’s completion of its Department of Defense (DoD) high-purity yttrium oxide supply chain assessment.
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Stans Energy Corp. (TSXV: HRE | OTCQX: HREEF) was up +17.65% in Canada and +2.88% in the US. On August 6th, Stans Energy released an update on continuing corporate development issues surrounding the Aktyuz Licence Area, the engineering projects carried out by the Company’s contractors for feasibility study purposes and the impact of ongoing legal procedures on project development at Kutessay II, the company’s 100% owned flagship project in Kyrgyzstan.
Pele Mountain Resources Inc. (TSXV: GEM | OTCQX: GOLDF) gained +15.78% for the week in the US without any announcements. The company closed two tranches of private placement in the month of July, with all proceeds raised to finance qualified exploration expenditures.
I usually only reference companies up +10% or more for the week, but Northern Minerals Limited (ASX: NTU) was up 6.67% and I had an excellent interview with George Bauk last night, which I look forward to posting this week. On August 8th, the company announced exciting drill results from its Browns Range project, adding further confidence as Northen Minerals commences work on its planned JORC resource upgrade targeted for October.
An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>