Rare Earths and Technology Metals Shock and Surprise Investors in early November
InvestorIntelReport: The last couple of weeks held a lot of shocks for investors in the rare earth sector. The first one was hearing that Avalon Rare Metals have shifted their focus to lithium and tin to which we are exceptionally bullish on, as Avalon is allegedly no longer marketing the Nechalacho rare earth property.
The second shock was the Assembly of the First Nations of Quebec and Labrador demanding a moratorium on rare earth elements in the mining sector in Quebec, a decision that affects Matamec Explorations directly. Sensing perhaps “the difficulty of this ‘negotiation’ and the Natives’ hostility toward the Project, Toyotsu through its Toyotsu Rare Earth division signed a ‘termination and release’ agreement between itself and Matamec…leaving Matamec as the sole owner of the HREE deposit.”
If these were no enough shockers for the rare earth sector, Molycorp closed on Friday at $1.25 and Lynas at $0.06 – both close enough to their 52-weeks lows, for any wise investor to ask: are we at the bottom, yet?
Numerous emails to me on Stans Energy and a story from another online site stating late last week that Stans “the Government of the Kyrgyz Republic (formerly Kyrgyzstan) has notified the Toronto-based company that it is moving to revoke its mining licenses for its Kutessay II and Kalesay properties.” We sent several emails to management asking for a quote to counter the alleged difficulties, but have yet to hear back other than we continue to watch for development in the Skolkova grant which I personally deemed substantial, as it ‘appears’ to me that all Stans needs to do is nail down a Moscovian technology partner – and voila, they are back in the game.
Flash forward to Saturday night, as I dined at Carisma — one of the best Italian restaurant in downtown Toronto with Jack Lifton, Gareth Hatch and Luisa Moreno hosted by Northern Minerals CEO George Bauk. In George’s presentation I was shocked again to discover that Northern Minerals is now the #3 largest market cap company in the rare earths sector. After all, I owned the only 2 FTSE calculated rare earth element leaders (REEL) indices for several years, and so I pulled up a REEL ranking for June 2013 to remind myself of how far they have come:
Get our daily investorintel update
For starters, one should note that yes, Orbite Aluminae never proved to be a rare earth story, Focus evolved into a leading graphite story, and so — in just less than a year and a half, and nearly 30 news releases since January — Northern Minerals has gone from #18 in market caps to #3 with a market capitalization of $110mm* (as 15-Oct @0.25).
Northern is undoubtedly celebrating this morning’s announcement of the 10 year negotiated ‘whopper of a deal’ between China and Australia, which will undoubtedly turn intense interest to the ASX and the Aussie resource companies from investor all around the world. Roll in recent achievements including environmental approval, nearly >$5mm in the bank and a commitment to become the first significant dysprosium producer outside of China. Peter Epstein did an excellent interview 2 weeks ago with George Bauk that was heavily viewed and we have another video update planned for early this week where I will kick off a “why invest in the ASX” series.
In lieu of all of the shockers in the sector recently thought we would comment on some pleasant InvestorIntel members surprises starting with Alaskan favorites Ucore Rare Metals who confirmed Jack Lifton’s theory that indeed the rare earth processing revolution has officially begun. The announcement Ucore Uses Molecular Recognition Technology to Generate 99%+ Pure Heavy Rare Earth Concentrate generated enough interest that trading was halted and we had to sort through a heated debate online.
Bruno writes: “In 2012, the US Defense Department entered into a strategic partnership with Ucore to bring the resource into production, showing the extent to which the US government wants ways to reduce reliance on China for rare earths. Technology was always going to be one of Ucore’s most appealing aspects both because of its targeted end users and, more significantly in this pre-production phase, thanks to its testing of advanced processing methods such as Molecular Recognition Technology.” – I pulled this out because I do believe that we will see an increasingly interested audience from the technology sector as more rare earths and critical materials announce technology patents, like Rare Element Resources achieved last week as described by Ecclestone as — grasping the Holy Grail.
On other news, $FREFF up +17.91% and $FRO +8.89% on news last week as Frontier Rare Earths Announces Filing: Q3 2014 MD&A and Financial Statements. Meanwhile U.S. Rare Earths Inc. $UREE continues to clip north +15.97% on the news from earlier this month about becoming the first American underground REE miner to remove rare earth material in decades.
Non-member but John Kaiser favorite Namibia Rare Earths Filed their 43-101 Preliminary Economic Assessment Report — but has anyone been watching Mark Smith of NioCorp lately?
In reviewing numbers and updates this morning NioCorp has put out seven (7) news releases since the beginning of November and $NIOBF was up +15.05% and $NB.V moved +9.09+ last week on news such as Phase II Drilling Complete, Phase III Commences that we will be interviewing Mark about later this week.
I would also like to personally congratulate Stria Lithium for $SRA.V up +11.54% on news last week after they announced a funding a commitment from the Government of Canada through the National Research Council of Canada industrial research assistance program in support of Stria’s “novel lithium processing technologies aimed at producing low-cost, very high purity lithium products.”
To review this last week’s leaders and access other highlights usually one must click here to log-in to access or click here to become a member. Members usually receive an electronic copy but the program we use has been hacked — so today’s version is complimentary….
The following InvestorIntel Rare Earths & Technology Metal members were >+10% for the week ending November 14, 2014
With regards to our other InvestorIntel leaders of the week in other categories, they were as follows:
The following are the Top 15 most read articles of the week on InvestorIntel — thank you for visiting…
- The future of the non-Chinese rare earth market – Steve Mackowski
- Ucore’s MRT for rare earths REE-awakens investment market interest – Alessandro Bruno
- First Nations “demand” a moratorium on rare earth mining in Quebec – Alessandro Bruno
- Getting real on market reality – Tracy Weslosky
- A landmark climate accord that leaves ‘green tech’ and rare earths as the biggest gainers – Alessandro Bruno
- Weslosky with “the Wolf of Weed St.” on investing in the marijuana and hemp markets – Tracy Weslosky
- Northern Graphite and Graphite One lead the graphite sector in the first week of November – Alessandro Bruno
- Game on as the rare earth processing revolution has officially begun – Jack Lifton
- Chinese insiders “still bullish” on rare earths – Hongpo Shen
- Good ZEN and high DVR performance not enough to drive graphite sector in October – Alessandro Bruno
- China’s 2014 exports of rare earth permanent magnet expects to reach a new high – Hongpo Shen
- Revalidation results offer hope towards an ‘elegant way to destroy cancer’ – Tracy Weslosky
- The Tesla Beauty Contest – Alessandro Bruno
- Uranium Stocks Remain Near 52-Week Lows Despite Bounce in Spot Price – Peter Epstein
- Carlisle Goldfield’s Lynn Lake joint venture with AuRico Gold — a strong vote of confidence – Alessandro Bruno
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>