They are back: Rare Earth Market turns around.
In reviewing performance of the resource markets this last week, there is one clear leader: and they are the rare earths and critical minerals sector. Alessandro nailed the Tesla Motors story on Friday titled from ’0′ to Wall Street darling faster than a ‘Model S’. After all this is what we have been saying all along, that renewable energy is the next industrial revolution – and Tesla Motors is gunning their electric engines in anticipation of this market frenzy.
Or is this the inevitable turnaround simply a predictable outcome that occurs when one is at the bottom and there is nowhere left to go but up?
There is one reliable global indicator in the rare earth sector on what’s happening in our market and that’s the REE Leaders Index. Calculated by FTSE, this index is the only one of its kind in the world and it tracks the leading 15 ROW rare earth companies and their performance.
Let’s leave the Tesla in the parking spot and review the facts for a moment…
Last week, the Rare Earth Leaders Index or REEL (Bloomberg ticker) supplied by REE Stocks Company Ltd. kicked off the Monday market open at 428.64 and closed on Friday, May 10th at 507.11: up +18.31%. Helped along the way by 12 of the 15 REEL companies last week up nearly +10% or more – they are as follows:
- Quest Rare Minerals’ TSX: QRM opened Monday May 6th’s market at CAD$0.5300, closing at $0.7500 – the star performer of the week rising +41.51%; Quest’s NYSE MKT: QRM started the week at USD$0.5600, closing Friday, May 10th at market close at $0.6900 — up +23.21%.
- Stans Energy Corp.’s TSXV: HRE finally has a past due comeback rising from CAD$0.2000 at week’s open, closing at $0.2750 at week’s end – up +37.50%; or their OTCQX: HREEF that opened at USD$0.2040 on Monday and closed at $0.2250 on Friday — +10.29%.
- Rare Element Resources Ltd.’s TSX: RES starts the week at CAD$1.8300, closing at $2.4900 – up +36.07% and their NYSE MKT: REE opens Monday AM at USD$1.8600, closing Friday PM at $2.3300 for the week – up +25.27%.
- Molycorp’s NYSE: MCP started the week at USD$5.9300, put out their First Quarter results on Tuesday that garnered shareholder appreciation day on Friday, they closed at $7.3400 – up +23.78%.
- Tasman Metals Ltd.’s TSXV: TSM opened the week at CAD$0.7300, closed at $0.9000 — up +23.29% and Tasman’s NYSE MKT: TAS started the week at USD$0.7400, closing at $0.8800 – up +18.92%.
- Lynas Corp.’s OTCQX: LYSDY kicked off the week post Malaysian election with USD$0.5300 and closed at $0.6680 – up +26.04%; Lynas’ ASX: LYC which started at AUD$0.5450, closed at $0.6600 – up +21.10%. (Note: we printed a story on Sunday, May 4th that said that the Malaysian election results could be the catalyst for a REE rebound)
- Northern Minerals’ ASX: NTU started the week at AUD$0.1200 and closed the week at $0.1400 – up 16.67%.
- Alkane Resources’ ASX: ALK started the week at AUD$0.5000, closed at $0.5650 – up +13.00% or their OTCQX: ANLKY started at USD$4.97, closed at $5.31 – up 6.84%.
- Great Western Minerals Group Ltd.’s OTCQX: GWMGF started the week at USD$0.1350, closing at $0.1500 – up +11.11%; their TSXV: GWG began the week at CAD$0.1400, closing at $0.1550 – rounds out the leaders above 10% or more – up +10.71%
- Greenland Minerals & Energy’s ASX: GGG started the week at AUD$0.2400, closed at $0.2650 – up +10.42%.
- Arafura Resources Ltd.’s ASX: ARU started the week at AUD$0.1100, closing at $0.1200 – up 9.09%
- Avalon Rare Metals Inc.’s TSX: AVL’s starts the week at CAD$1.0700, closing at $1.1700 — up +9.35%; and their NYSE MKT: AVL started at USD$1.0700, closing at $1.1600 – up +8.41% for the week.
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Considering the year we have had, I thought I would include the last 6-months where our high was Thursday, November 8, 2012 at 718.43, and again – the low was in the last 30-days on Thursday, April 18th at 403.61: a 43.82% difference…it’s been a helluva ride.
We might as well do the year-in-review while walking down memory lane: and here our high was on June 20, 2012 at 965.07, with the low being again – in the last 30-days on April 18th at 403.61: a whopping 57.78%.
Last week’s ProEdgeWire sponsors moved on average +5.39%. Our basket has a few more critical material players in it – but I am betting that we are on a cusp of a turnaround. Check out Texas Rare Earths who’s OTCQX: TRER started the week at USD$0.3575 and closed positively on news at $0.4000 – up +11.89% for the week after their news release.
(*Disclaimer: Tracy Weslosky is the Publisher of ProEdge Media Corp., which publishes ProEdgeWire. She is also the Managing Director for REE Stocks Company Ltd. She is not a licensed investment advisor.)
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>