Orbite Aluminae (+32.64%), Matamec (+30%) and Medallion (+29.52%) light the flame for rare earths and critical mineral sector recovery
Rare Earths and Critical Minerals Week-in-Review (for the week ending September 20, 2013): Now this is more like it! Heading in the right direction, the REE Leaders Index was up +5.30% on a 20-point jump for the week (closing at 397 points last Friday), while the InvestorIntel Rare Earths and Critical Minerals members’ average was followed close behind, gaining a solid +4.67% overall. There’s a lot to write about from last week, so let’s get down to it…
Shares in Lynas Corp (ASX: LYC) rose +6.2% last week to a seven-week high on the news that the company has been given debt-payment relief on a $225 million loan from Japan’s Sojitz. The relief was granted due to weak global markets and start-up delays at its Malaysian plant. While the reasons behind the need to renegotiate terms on the debt are not encouraging, the new terms, which extend a potential penalty payment in return for other earlier payments, were well taken by the market.
Orbite Aluminae Inc. (TSX: ORT | OTCQX: EORBF) took first place last week with a phenomenal +32.64% increase in share price on the American exchange and +25.76% on the Canadian exchange. On September 16th Orbite announced an update on its ongoing financing initiatives. The company’s primary objective is the completion of construction and optimization of its high-purity alumina (HPA) production facility.
InvestorIntel’s dark horse from Quebec — Matamec Explorations Inc. (TSXV: MAT | OTCQX: MHREF) — rode in to take second spot, jumping +30% and +16.67% on the American and Canadian exchanges respectively. The company released the results of its Feasibility Study earlier this month and last week, Andre Gauthier, Matamec’s President and CEO, interviewed with yours truly and discussed the $2.55 billion in projected revenues, the details of Matamec’s Kipawa JV HREE project with Toyota among others.
Medallion Resources Ltd. (TSXV: MDL | OTCQX: MLLOF) was up a strong +29.52% on the American exchange and +26.47% on the Canadian exchange on no news.
Shares in Rare Element Resources Ltd. (TSX: RES | NYSE MKT: REE) were up considerably — +16.73% in Canada and +8.84% in the US — on the September 19th announcement that the company entered into a Memorandum of Understanding (MoU) with the US Forest Service to prepare an environmental impact statement on the Bear Lodge Project. The signing of the MoU officially starts preparation of an Environmental Impact Statement on the Bear Lodge project. Rare Element Resource President and CEO Randall J. Scott commented: “Starting the EIS process is a significant milestone in our progress toward bringing the Bear Lodge Project.
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IBC Advanced Alloys Corp.’s (TSXV: IB | OTCQX: IAALF) stock price rose +16.64% in the US and +9.09% in Canada on the company’s September 17th announcement of its update on IBC’s Copper Alloys division and the development of a new alloy. The company has successfully developed a new advanced copper-based alloy for an internationally recognized global leader of manufacturing equipment and casting technologies for the automotive industry and is targeting $2.5 million in annual sales.
Texas Rare Earth Resources Corp. (OTCQX: TRER) was up +13.33% on the September 20th announcement that the company applauds the US House of Representatives passage of the National Strategic and Critical Minerals Production Act of 2013. Texas Rare Earth Chairman Anthony Marchese stated, “We welcome the House’s action. In the current partisan climate, the face that the bill drew 15 Democrats is a solid sign of a growing consensus on the importance of strategic and critical metals.” Texas Rare Earth’s Round Top rare earth minerals project demonstrates strong showings of the heavy and critical rare earth elements most often cited as being essential to Department of Defense programs and weapons platforms, as well as being key components of alternative energy technologies as identified by the Department of Energy.
The always-impressive Minco Plc (AIM: MIO) lived up to my expectations, yet again. Shares increased +12.90% last week on no announcements.
Ian Chalmers and the dream team at Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY) had a strong week, up +12.50% in Australia and flat on the American exchange. The company had a number of announcements last week, the most significant being its September 16th Annual Report to Shareholders and the notice if Alkane’s Annual General Meeting. The following day, the company released its most-recent corporate presentation.
Hastings Rare Metals Ltd. (ASX: HAS) gained +12.50% last week on no announcements…but they have had a new impressive Board of Director announced already this week.
Quest Rare Minerals Ltd. (TSX: QRM | NYSE MKT: QRM) enjoyed a positive week on both sides of the border, up +11.11% in Canada and +10.79% in the US.
On other news, I just got back from London and dealt with FTSE and the REE Leaders Index. Have you seen the movement already this week? And speaking of movements, the kidney and steak pie I dined on while watching an investment presentation at Quinn’s pub was the catalyst for this piece: Creativity proves a timely laxative for capital constipation in the junior markets.
BTW, if you want a sizzling European investment road show, I must extend the 2-thumbs up to my pal Nick Fuller. Speaking of interviews, we posted a great interview with Al Shefsky, President and CEO of Pele Mountain Resources Inc. (TSXV: GEM | OTCQX: GOLDF). In it, we discuss Pele Mountain’s competitive advantages at the company’s flagship Eco Ridge Mine Rare Earth and Uranium Project, yttrium and other critical rare earths, and Pele’s updated NI 43-101 Resource Estimate and Preliminary Economic Assessment.
InvestorIntel’s award-winning journalist Robin Bromby wrote one of the most popular pieces last week, entitled: China may be making lithium the world’s most strategic commodity. Another great article was Robin’s: Egypt’s phosphate (not realizing potential) and critical metals (still an unknown)…but I am still digesting his tin story this AM where he tells me that we will run out of tin in 19 years making…insert drum roll — tin a critical metal.
Here are your numbers for the week:
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>