EDITOR: | March 25th, 2014

Market is like “waiting for water to boil”

| March 25, 2014 | No Comments
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War-CycleInvestorIntelReport Week-in-Review: Just tell everyone ‘we are phucked’ said Rockstar in reply to market questioning on Saturday. Hmmm, I thought – I prefer our book-keeper’s commentary that “it feels like we are waiting for water boil”. At the end of the day, I agree with numerous members of our financial community that see strong signals that we have entered a “war cycle” in our marketplace, which means that basically investors need to tread carefully in the marketplace, as we genuinely have no idea where the mines are located.

And this makes it different from post 2008, how?

Speaking of mines, rare earth demand, agribusiness, gold and most critical materials – including uranium, should benefit from the recent Crimean crisis thanks in part to Putin and the G8 insuring that we all get the memo. Uh, excuse me, considering that CNN is referencing the G7 (yet again), consider the message received. Questioning leadership comes naturally for us as we are based in Toronto, where Mayor Rob Ford has shown mainstream America that you can secure a Kimmel appearance by reducing government spending while smoking crack. Following the people leading our political infrastructure when they seemingly have little to no understanding of the financial market is indeed a task. This said, I would argue that Putin does – and of course, Obama, who unlike Putin is not a multi-billionaire — has enough billionaires around him to insure some safety net of understanding…or so we hope.

So let’s talk numbers for last week. The REE Leaders Index (FTSE: REEL) closed from 299.83 to 290.63 at Friday’s market close – down -3.07% versus our Rare Earth & Technology Metal members were down -2.81%. InvestorIntel Graphite & Graphene members were down -3.91%, Agribusiness up +1.76%, Uranium & Nuclear Energy down -2.13%, Gold, Precious & Base Metals up +4.07%, Cleantech down -1.71%…and our Oil & Gas members were up +26.72%.

The reason Oil & Gas was up due in part to our #1 performer of the week Gondwana Oil Corp. (“Gondwana”). Gondwana CSE: GO up +50% commenced trading on February 26 — is involved in the exploration and development of oil and gas resources in Ghana. Gondwana owns a 70% stake in Miura Petroleum Ltd., which has been officially been invited by Ghana’s Ministry of Energy to negotiate exclusively for the exploration license at the 1,600 sq km “Offshore Cape Three Points South Block ” off the Ghanaian coast, as confirmed on March 18.

  • MAR19: InvestorIntel Feature: #Gondwana Oil to benefit from #Ghana’s offshore oil infrastructure http://shar.es/BmQ8q
  • MAR18: Gondwana Oil Selected to Negotiate Ghana Block – InvestorIntel http://shar.es/BmQhn

In position # 2 of the week was Ucore Rare Metals with their respective TSXV: UCU up +24% and OTCQX: UURAF up +18.25 on significant political news. Dr. Luc Duchesne penned a feature on Ucore this weekend titled $145 million bonds show Alaska’s unprecedented support to Ucore’s Bokan-Dotson Ridge project: marks end of sink-or-swim policy as a follow up to the news release put out by the Alaskan government on Friday, March 21st (click here) that clearly shows a State government that understands what sustainability means.

Excerpt: “In an unprecedented move to support the rare earth industry, the Alaska Senate Labor and Commerce Committee recommended a new bill (click here) which would grant the Alaska Industrial Development and Export Authority (AIDEA) the ability to issue bonds to finance the infrastructure and construction costs of Ucore’s Bokan-Dotson Ridge rare earth element project…Should the State of Alaska pass the bill, it will mark a new U.S. policy in the rare earth industry as thus far the U.S. has supported research efforts, letting companies struggle on the own in the China-dominated market…The bill marks the end of the sink-or-swim rare earth policy that has prevailed in the West.”

Basically, the Alaskan Labour and Commerce committee passed the bill that allows it to proceed to the Senate floor next week so that AIDEA can participate in the build-out of 2 resources projects towards sustainability and jobs for the people of Alaska.

  • MAR21: Govt to finance Resource devt? Labor & Commerce Committee Passes Bill w/ Provisions 2 Boost SE #Alaska Economy http://shar.es/BmBVq
  • FEB24 NR: #Alaska Government steps up to the plate with $145M bond offer to finance #Ucore Project http://shar.es/BmThP

In position #3 of the week was Carlisle Goldfields Ltd. OTCQX: CGJCF up +20.69% and TSX: CGJ up +7.14%. Last week, Carlisle announced interim results from an “additional 6 holes on its 2013 Infill drill program at its Farley Lake Mine Project. Drill hole FL13-01 intersected 6.1 g/t gold (“Au”) over 17.0m from 138.0m to 155.0m.” Carlisle’s President and CEO, Abraham Drost commented that: “Our second set of drill results shows that the grade of Inferred resources encountered in the current drill program at Farley is holding up well. While there is more drilling to be done to convert Inferred ounces at Farley to the appreciable pre-feasibility ready Measured and Indicated gold resource at the Farley and MacLellan deposits under the recent optimized PEA (see Press Release dated February 27, 2014), we are off to a good start.”

  • MAR17: #Carlisle Goldfields announces Infill Drill Results on Inferred Material from the Farley Lake Mine Project…#Gold http://shar.es/B01OS

U.S. Rare Earths Inc. OTCQB: UREE up +19.91% on no news, but then U.S. Rare Earths is a leader in relevant sustainability discussions (See Board), so this is not surprising. Perhaps it is more of a surprise that GeoMegA Resources Inc. TSXV: GMA was up +18.18% — again last week. Often times, a stock will decrease while a private placement is occurring, instead they closed the first tranche of a $3,315,000 brokered private placement and have kept up the rocket clip they have been moving at since the new year…this is undoubtedly the rising rare earth star of the year that the analysts need to race out to their site for an update!

Tasman Metals Ltd. TSXV: TSM up +14.12% and NYSE MKT: TAS up +11.80% on no news, but then they have an excellent following, and a good piece to read that was just published a week and a half ago Tasman Metals is the keys to Europe achieving a rare-earth supply chain that I urge you to read.

Allana Potash Corp. OTCQX: ALLRF up +10.33% and TSX: AAA up +5.95% with news on Wednesday that Allana had launched technical cooperation with ICL and of course, we published an interview with Farhad Abasov “One step closer to production with ICL strategic partnership” earlier that week that you may access here to see why he has such respect in the industry.

Speaking of interviews Half a dozen video interviews published and released this last week, with Dr. Conly securing the most views in the shortest period of time (broke 1000+ in less than 4 days) and Jack Lifton is well on his way to record breaking commentary on his promotional video with nearly 100 comments. This said, I wish this audience had watched the entire video (InvestorIntelReport) as there was a lot of Intel communicated from his meetings with Malaysian government officials for instance.

InvestorIntel Videos Interviews of the Week:

  • MAR21: Interview with Alastair Neil of #FEM on how Investors may secure, own, and store physical strategic metals http://shar.es/BmNtc
  • MAR19: Interview with Don Baxter of Focus Graphite on some of the misunderstandings associated with graphite, starting with the issue of grade http://shar.es/BmM2C
  • MAR18: Interview with Randy Scott of Rare Element Resources on their ‘Heavies’ & Rare Earths Recovery Patented Technology http://shar.es/BmM3F
  • MAR17: Interview with Farhad Abasov: #Allana Potash one step closer to production with #ICL strategic partnership http://shar.es/BmPSw
  • MAR14: #1 most viewed Interview of WK: Geology professor confirms Zenyatta’s graphite deposit is ‘special and rare’ http://shar.es/BmVB4

I want to mention that Peak Resources Ltd. ASX: PEK was up another +8.89% after announcing a robust preliminary feasibility study for their Tanzanian Ngualla project. In re-reading this news release for the interview we did Thursday evening, they announced that they had lowered underlying capital cost by US$ 91 million, increased their NPV to US$ 1.310 billion and — (yes there is more), they anticipate a 58 year mine life.

On a final note, Texas Rare Earth Resources Corp. OTCQX: TRER was up +7.32% as they added Robert Wingo to their Advisory Board and there was an excellent feature published on how Texas Rare Earths could supply lithium to Tesla Motor’s battery ‘Gigafactory’ that received a lot of eyeballs.

Speaking of viewer interest, the Top 10 Most Viewed Articles on InvestorIntel last week were the following:

  1. Lynas and Molycorp should go bankrupt – Jack Lifton
  2.   The Rest of the World: The Chinese Perspective on Rare   Earth Supply & Demand for the next Decade, 2014-2020 – Jack Lifton
  3.   The one word you should know for investing in rare earths   is Xenotime – Chris Ecclestone
  4.   Allana Potash one step closer to production with ICL   strategic partnership – Sue Glover
  5.   Bitcoins are dead, Rare Earths are ‘alive’ and FDIC vs.   Libor to re-build trust for the ‘little people’? – Tracy Weslosky
  6.   Rising tensions in the Pacific suggest China will ignore   WTO ruling on rare earths – Alessandro Bruno
  7.   Graphite: Shiny Black Gold – But Not for Everyone – Jon   Hykawy
  8.   Baotou quotas reflect stable supply and demand for rare   earths in 2014 – Hongpo Shen
  9.   Interview: Geology professor confirms Zenyatta’s graphite   deposit is ‘special and rare’ – Sue Glover
  10.   Texas Rare Earths could supply Lithium to Tesla Motor’s   battery ‘Gigafactory’ – Alessandro Bruno

Top 10 Most Viewed Articles on InvestorIntel in the last 30-days were as follows:

  1. Lynas and Molycorp should go bankrupt – Jack Lifton
  2. Interview: Focus Graphite signs historic offtake agreement to supply Graphite to China – Tracy Weslosky
  3. The Rest of the World: The Chinese Perspective on Rare Earth Supply & Demand for the next Decade, 2014-2020 – Jack Lifton
  4. Interview: Luisa Moreno on the state of the rare earth market and her ‘Super Seven’ – Tracy Weslosky
  5. Putin’s plan has huge implications for critical minerals balance of power – Robin Bromby
  6. Interview: The War is on for Strategic Materials in France – Tracy Weslosky
  7. Interview: Geology professor Dr. Conly confirms Zenyatta’s graphite   deposit is ‘special and rare’ – Tracy Weslosky
  8. Graphene: the emergence of a new type of rechargeable battery – Dr. Luc Duchesne
  9. Graphite breakthrough — Chinese aluminium giant   looks for better electricity efficiency – Robin Bromby
  10. House of Cards Finale Advises U.S. of Military Shortage of   Rare Earth Samarium – Tracy Weslosky

Tracy Weslosky

Editor:

Tracy Weslosky is the Founder and CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading e-news source for investors, entrepreneurs and industry leaders ... <Read more about Tracy Weslosky>


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