EDITOR: | November 17th, 2014 | 11 Comments

Rare Earths and Technology Metals Shock and Surprise Investors in early November

| November 17, 2014 | 11 Comments
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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:

REEL-2013-June

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

2014-11-14-IIR-Leaders

With regards to our other InvestorIntel leaders of the week in other categories, they were as follows:

2014-11-14-StockLeaders-Members

The following are the Top 15 most read articles of the week on InvestorIntel — thank you for visiting…

  1. The future of the non-Chinese rare earth market – Steve Mackowski
  2. Ucore’s MRT for rare earths REE-awakens investment market interest – Alessandro Bruno
  3. First Nations “demand” a moratorium on rare earth mining in Quebec – Alessandro Bruno
  4. Getting real on market reality – Tracy Weslosky
  5. A landmark climate accord that leaves ‘green tech’ and rare earths as the biggest gainers – Alessandro Bruno
  6. Weslosky with “the Wolf of Weed St.” on investing in the marijuana and hemp markets – Tracy Weslosky
  7. Northern Graphite and Graphite One lead the graphite sector in the first week of November – Alessandro Bruno
  8. Game on as the rare earth processing revolution has officially begun – Jack Lifton
  9. Chinese insiders “still bullish” on rare earths – Hongpo Shen
  10. Good ZEN and high DVR performance not enough to drive graphite sector in October – Alessandro Bruno
  11. China’s 2014 exports of rare earth permanent magnet expects to reach a new high – Hongpo Shen
  12. Revalidation results offer hope towards an ‘elegant way to destroy cancer’ – Tracy Weslosky
  13. The Tesla Beauty Contest – Alessandro Bruno
  14. Uranium Stocks Remain Near 52-Week Lows Despite Bounce in Spot Price – Peter Epstein
  15. Carlisle Goldfield’s Lynn Lake joint venture with AuRico Gold — a strong vote of confidence – Alessandro Bruno

Tracy Weslosky

Editor:

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>


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Comments

  • Tracy Weslosky

    I received an email from Brian St. Louis, Manager, Government Affairs from Avalon who has confirmed that we may publish his statement: “The CBC article was misleading. We are still actively marketing the project to REE consumers and investors and interest is still high as it remains the most advanced large HREE project outside China (feasibility completed, environmental assessment approved, a separation solution involving Solvay, and early works construction permits). One thing for certain, is that the REE market is less active at present and there is less pressure on off-takers to support new non-Chinese supply sources coming on-stream. Interest will undoubtedly come back, but in the meantime, we are working on our two other advanced projects which contain rare minerals and metals which are in higher demand right now than REE (Lithium minerals, Tin and Indium).”

    November 17, 2014 - 3:40 PM

  • Curious Shepherd

    Not that the news from Ucore was not good but “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.”
    Are not stretching a little bit the truth? The way I recall it, the company asked for the halt (there was not much trading – even after the halt was lifted)
    “2014-11-12 09:04 ET – Halt Trading
    Ucore Rare Metals Inc. has been halted at 6:02 a.m. PT on Nov. 12, 2014, at the company’s request, pending news.”

    November 17, 2014 - 8:28 PM

  • Dean H

    Thank you very much Tracy for sharing Avalon Rare Metals’s statement with us!! 🙂

    November 17, 2014 - 8:43 PM

  • Tracy Weslosky

    Curious Shepherd. Your perspective is incorrect and I do not take kindly to you attacking my reputation or integrity. InvestorIntel has over 27,000 pieces of content and last week — the news release you referenced was the #2 Most Read item on InvestorIntel for last week…just behind Mackowski’s piece. The REE sector is small, and the news release and the Bruno article garnered well over 2 dozen comments, including 2 from industry expert Jack Lifton. We have no challenge in being corrected, but your allegations are incorrect on the industry debate. Let me add — I sat with half a dozen experts on Saturday night and again: Ucore’s news was part of the discussion. So I beg to differ.

    November 18, 2014 - 9:04 AM

  • David Mortimer

    I don’t know what it is about Ucore but it has its detractors who seem to attack the company any time it has a news release especially if it is of a positive nature maybe it is investors in other Rare earth mines who don’t want to see Ucore succeed ???? From a personal point of view I find you and your web site of a high integrity .

    November 18, 2014 - 1:51 PM

  • Bill Keenes

    David, it does help to maintain perspective, by debating the issues, to consider alternative views

    yes this is an excellent website of the highest integrity, with that I agree fully

    November 18, 2014 - 2:28 PM

  • Tracy Weslosky

    Thanks David and Bill, very kindly — and for your feedback. As you know, we welcome debate…but we want ideas, visions and meaningful and relevant commentary. So for instance, I did speak with Jack Lifton, James Kenny and George Bauk today all about processing technologies. Another source, who asked that they be unnamed stated that they felt it was highly unlikely that we had anything outside of China that can compete with what the Chinese have. So….let’s send Hongpo Shen in this week, and see if he can give us an update from the Asian market perspective.

    Thanks again for visiting InvestorIntel….and hope you like the new Rivkin Report we have been authorized to publish. I have been reading Scott Schuberg for a couple of years, and like his commentary.

    Global perspectives are always beneficial to understand.

    November 18, 2014 - 5:48 PM

  • Curious Shepherd

    Tracy,
    I was not questioning the debate… just pointing out that trading in the company was halted at the request of the company before the start of the trading day and not as the result of intense interest generated as you pointed out in your article:
    (“The announcement Ucore Uses MRTechnology to Generate 99%+ Pure Heavy Rare Earth Concentrate generated enough interest that trading was halted”)

    I have a large position in Ucore and will appreciate a large appreciation in their shares. In a way it was very disappointing the reaction of the market to very good news. This shows that this whole sector is not really appreciated by the market.

    I do appreciate the good work you have done with this site. You have compiled in a single place one of the best sources of information about the RE sector. You managed to have some of the best experts post here on a regular basis providing perspective on the future of the sector. Thank you.

    In regards to my previous note, please feel free to remove it if you feel it was not appropriate. It was not intended as an attack to your reputation.

    November 20, 2014 - 12:03 AM

  • Tracy Weslosky

    CS. The reason behind halting stock before significant news for any company is with the anticipation that the market will react strongly and to insure that all levels of compliance are met.

    Your conclusions, while I appreciate; do not take into consideration that the entire market as a whole is not responding strongly to anyone’s news due to market conditions. So your conclusion that “this whole sector is not really appreciated by the market.” is not correct in my humble opinion. If you had been a potash company or a nickel company with equally exciting news, one could make a case that the “flat line” by investors is indicative of other variables.

    Please note that I am NOT an investment advisor, however; as a Publisher in the sector for many years now — I happen to agree that this news was worthy of more interest. As such, we have another story we are working on for publication next week to draw more attention to the Molecular Recognition Technology.

    Ucore is an InvestorIntel member but there is no question that the work Jim McKenzie and his team have done for the rare earth sector is immeasurable, and frankly; their work for sustainability and the resource sector in general should be applauded.

    Now the market sector I am being told by the smartest people in the world is at the bottom of the market…the question is: when will it turn?

    I have an interview at 1PM today to ask this question from an expert. This said — forecasts are just that.

    Thanks for visiting InvestorIntel — and your last comment was good. You shared real information that our audience can consider and think about, and perhaps respond.

    Most of us have lost money in the market and are sensitive to the challenges in it.

    November 20, 2014 - 8:58 AM

  • Barrey Kirk

    Tracy, there another company called Sarssia Resouces it just begining to be recognized the ceo is Scott Keveil. The company has a large deposit of niobium the company has very little liabilities . Owns 100% of it’s property if you are interested like to hear your opinion on this company.

    November 24, 2014 - 9:14 AM

  • Tracy Weslosky

    Thanks Barrey for your comment. I have heard of Sarssia, and will reach out to Scott….but let me assure you, we DO write about non-members of InvestorIntel…however, we DO prioritize members.

    Thanks for coming to InvestorIntel — and this is a great opportunity for me to thank our members for facilitating our ability to hire the writers that we do, so that we may provide free content to our audience.

    November 24, 2014 - 1:53 PM

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