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Rare Earth Element Cos Could See Next Bull Market Run
Monday May 25th, 2009 / 21h15
By Brian Truscott
Of DOW JONES NEWSWIRES
VANCOUVER -(Dow Jones)- Two TSX Venture-listed rare earth companies are enjoying strong gains Monday - an otherwise quiet day on the Toronto Stock Exchange as U.S. markets are closed for Memorial Day.
Commerce Resources Corp. (CCE.V) and Rare Element Resources Ltd. (RES.V) are up 32% and 37% respectively, in part because two well-regarded market watchers are talking up a niche resource sector that's largely unknown to the everyday investor.
Investment-letter writers James Dines, who writes the Dines Letter, and John Kaiser, who writes the Bottom-Fish Online report, say rare earth elements are increasingly important to global markets.
Dines, who has declared himself a big-time "investor bug" of various nascent markets in the past, said last Friday that rare earth elements could be the next major surprise bull market.
Why? Rare earth elements, which go by names such as thulium and lanthanum, are used in numerous electronic applications as well as superconductors, super-magnets, refining catalysts and hybrid-car components.
The two other rare metals one needs to know about are tantalum and niobium. Tantalum is widely used in the electronics industry. Niobium is used in steels and superalloys.
The actual amount of these elements that go into producing, say, hybrid cars is small but necessary. Supply is therefore vital to producers that need these rare elements in their products.
Kaiser agrees, saying the value of rare earth element miners will be increasingly strategic as demand for product outstrips global supply.
Enter Commerce Resources, a late-stage tantalum and niobium explorer, and Rare Element Resources, which has a key rare earth project in Wyoming.
As Kaiser says, the strategic worth of what they're sitting on in the ground is becoming as valuable as the elements themselves.
He used a recent example: state-owned China Nonferrous Metal Mining Group (CNMC) took a majority stake in Lynas Corp. (LYC.AU) this month, giving the Australian rare earth miner US$366 million in funding. While Lynas has offtake agreements to Japanese, European and U.S. clients lasting for the next five years, its rare earth supply could last some 30 years. CNMC has now secured and therefore controls the future supply from one of the richest rare earth deposits in the world, Kaiser said.
That includes tantalum and niobium.
This is all the more important because the U.S. Defence Logistics Agency stopped selling into the tantalum market in 2008. Australia's Talisman, the world's leading supplier of tantalum, has ceased production indefinitely, citing the adverse effect of the black market supply as well as intense pricing pressure.
Black-market production in war-torn Democratic Republic of Congo is, by some estimates, supplying the world with some 30% of its required supply.
As both Commerce Resources and Rare Element Resources move toward production, their leverage on global producers increases, observers say.
"Commerce Resources is in a fascinating global position; the window for tantalum has opened wide," said David Hodge, president of Commerce Resources. "We are becoming part of the supply solution on a global basis; no matter what the studies say in terms of the price of extraction, the industry will say yes."
Commerce Resources is hoping to start open-pit production in 2010.
In Toronto, Commerce Resources is up 10 Canadian cents to 40 Canadian cents on 621,000 shares. Rare Element Resources is up 35 Canadian cents to C$1.30 on 633,000 shares.
Web Sites: www.commerceresources.com ;
--------------------------------------------------
China moving on WA explorers
Neil Dowling, Motoring Editor
May 25, 2009 12:22pm
WA-based rare earth companies are under the spotlight by Chinese investors as demand for the metals soar on current and forecast sales of electric vehicles.
Rare earths metals such as lithium are vital components in the manufacture of electric motors and batteries.
Over the past fortnight, the share price of rare earth and lithium players has soared.
Galaxy Resources (lithium) has shot up 100 per cent in the past week (now about 80c) and Argentinian lithium explorer Orocobre Limited is up almost 200 per cent (now 63c) in about the same period.
More companies are following the trend.
Lynas Corporation has signed a $522 million deal with Chinese conglomerate China Non-Ferrous Metal Mining Co. for a slice of its Mt Weld rare earth deposit near Laverton in WA.
The Mt Weld deposit is regarded as the richest in the world.
The investment will fast track the project that has recently stalled because of a lack of finance.
CNMC will control four seats of the board and 51.6 per cent of Lynas' capital once the two parts of the deal are completed.
It will be noticed, says Sam Berridge of StateOne Equities, that the Chinese have interests in about 95 per cent of the world rare earth producers.
That puts them in the high seat when it comes to the predicted explosion in electric propulsion for passenger cars.
Another WA company that has exposure to rare earths is Alkane Resources.
The company, though WA based, has projects in NSW.
Its Dubbo Zirconia project, 30km south of Dubbo, has processed 67 tonnes of ore to produce 1150kg of zirconium and 165kg of niobium.
It is trialling the recovery through the plant of yttrium and the heavy rare earths and also the recovery of light rare earth concentrates from the niobium stocks.
--------------------------------------------------
China Threatens U.S. Alt Energy Plans
By Ian Mathias
05/19/09 Baltimore, Maryland “Rare earths are more a Chinese thing than oil is an OPEC thing,” begins Byron King today. (Rare earths are hard-to-pronounce metals and minerals that, while in small supply, are found in seemingly every high-tech gadget around the world).
“The Chinese are running 95% of world output, and virtually all of the final refining and smelting… the U.S. left the biz about 10 years ago, and Japanese left it about four years ago.
“Rare earths are critical to all future ‘green’ energy, especially with things like permanent magnets for windmills (not to mention the rare earths that go into those ‘efficient’ light bulbs.) Every large windmill, for example, requires about 560 pounds of a rare earth called neodymium, for the permanent magnet within the turbine system. There’s no substitute for neodymium. People have gone through the entire periodic chart, and only neodymium will work in large permanent magnets.
“The U.S. has NO locale for manufacturing permanent magnets. None. Zilch.”
“The West had better get serious about rare earths or we’re forfeiting the key industries of the 21st century to China.”
--------------------------------------------------
Rare metals provide rare opportunities for investors
Gold may be a store of value, but some rare metals will play a much more important role in the technology age.
Jack Lifton
Published 5/10/2009
If gold had never existed, it would not have been missed. So far in human history, gold has had no utilitarian value, which means that its use is not critical to the construction or operation of any technology whatsoever. Critical here means that without a specific metal you cannot make the technological device desired, or if you can it will not have optimal properties.
Gold can have strategic value. That is to say that it is one of many materials that can serve the same necessary function. In the 14th century BCE, an Egyptian inventory of a nobleman’s burial treasures shows that a sky stone (meteoric iron) blade was valued at 40 times its own weight of silver! The potential for a meteoric iron standard didn’t last long after the common nature of iron ore and the mass production of iron for weapons was discovered and gold, silver and copper became -- probably in that order -- the coinage metals and remain primarily so today.
Copper first became a technology metal when its alloys bronze and brass became widely used to enable the manufacturing of reliable weapons up until the end of the 19th century. Copper attained to permanent technology metal status when its property as the most economical conductor of electricity made it into the nervous system of not only the industrial age but now of the age of technology.
Gold is a rare metal, but there are rarer ones. Gold’s remaining uses are as an arbitrary store of value -- as money -- and in the preparation of jewelry items, themselves intended to display wealth or maintain their value intrinsically.
Why invest in rare metals production? Almost all of the rare metals have evolved from minor metals to become the technology metals. The basic discoveries in the engineering, chemical and electronic properties of rare metals during and after World War II led to a search for natural resources that could be used to develop these newly discovered properties into practical, mass-produced devices, first for military use and then for daily use by everyone.
I am going to publish an organic listing the future potential of the rare and technology metals as the bases for practical mass-producible technologies. I will update the table and make changes in my recommendations as to whether or not you should buy, hold or sell investments, mainly in mining, in the production or end-use of my listed technology metals.
As a side note, this material also is being used as the basis of a talk entitled “Rare metals as rare opportunities for investors” at the Hard Assets Conference in New York on May 11.
I will do my best to explain concepts as we go along. I will begin by explaining why I have chosen the first group of “Rare Metals” in my “organic table.” They are the critical metals for twenty first century American industry chosen by the US National Academies, and their reasons for doing so are explained in great detail in the publication, “Minerals, Critical Minerals, and the U.S. Economy (2008), which is available free of charge on the Internet at books.nap.edu/openbook.php?record_id=12034&page=165#p… .
I will update on end-uses of the technology metals that are being proposed for mass production, such as the lithium-ion battery powered plug-in hybrid, and how the production rate of lithium will determine whether or not this technology ever becomes widespread or practical.
I will also be recommending individual rare metal miners as good investments for the short, medium and long term. My recommendations will not be based on whether or not a drill hole has found a trace of a rare metal on the company’s property but on a metric for evaluating rare metal mining opportunities that I will introduce on May 25. These company recommendations will also be organic, and I will be monitoring them to make sure that the metrics have not changed in a negative fashion.
Monday May 25th, 2009 / 21h15
By Brian Truscott
Of DOW JONES NEWSWIRES
VANCOUVER -(Dow Jones)- Two TSX Venture-listed rare earth companies are enjoying strong gains Monday - an otherwise quiet day on the Toronto Stock Exchange as U.S. markets are closed for Memorial Day.
Commerce Resources Corp. (CCE.V) and Rare Element Resources Ltd. (RES.V) are up 32% and 37% respectively, in part because two well-regarded market watchers are talking up a niche resource sector that's largely unknown to the everyday investor.
Investment-letter writers James Dines, who writes the Dines Letter, and John Kaiser, who writes the Bottom-Fish Online report, say rare earth elements are increasingly important to global markets.
Dines, who has declared himself a big-time "investor bug" of various nascent markets in the past, said last Friday that rare earth elements could be the next major surprise bull market.
Why? Rare earth elements, which go by names such as thulium and lanthanum, are used in numerous electronic applications as well as superconductors, super-magnets, refining catalysts and hybrid-car components.
The two other rare metals one needs to know about are tantalum and niobium. Tantalum is widely used in the electronics industry. Niobium is used in steels and superalloys.
The actual amount of these elements that go into producing, say, hybrid cars is small but necessary. Supply is therefore vital to producers that need these rare elements in their products.
Kaiser agrees, saying the value of rare earth element miners will be increasingly strategic as demand for product outstrips global supply.
Enter Commerce Resources, a late-stage tantalum and niobium explorer, and Rare Element Resources, which has a key rare earth project in Wyoming.
As Kaiser says, the strategic worth of what they're sitting on in the ground is becoming as valuable as the elements themselves.
He used a recent example: state-owned China Nonferrous Metal Mining Group (CNMC) took a majority stake in Lynas Corp. (LYC.AU) this month, giving the Australian rare earth miner US$366 million in funding. While Lynas has offtake agreements to Japanese, European and U.S. clients lasting for the next five years, its rare earth supply could last some 30 years. CNMC has now secured and therefore controls the future supply from one of the richest rare earth deposits in the world, Kaiser said.
That includes tantalum and niobium.
This is all the more important because the U.S. Defence Logistics Agency stopped selling into the tantalum market in 2008. Australia's Talisman, the world's leading supplier of tantalum, has ceased production indefinitely, citing the adverse effect of the black market supply as well as intense pricing pressure.
Black-market production in war-torn Democratic Republic of Congo is, by some estimates, supplying the world with some 30% of its required supply.
As both Commerce Resources and Rare Element Resources move toward production, their leverage on global producers increases, observers say.
"Commerce Resources is in a fascinating global position; the window for tantalum has opened wide," said David Hodge, president of Commerce Resources. "We are becoming part of the supply solution on a global basis; no matter what the studies say in terms of the price of extraction, the industry will say yes."
Commerce Resources is hoping to start open-pit production in 2010.
In Toronto, Commerce Resources is up 10 Canadian cents to 40 Canadian cents on 621,000 shares. Rare Element Resources is up 35 Canadian cents to C$1.30 on 633,000 shares.
Web Sites: www.commerceresources.com ;
--------------------------------------------------
China moving on WA explorers
Neil Dowling, Motoring Editor
May 25, 2009 12:22pm
WA-based rare earth companies are under the spotlight by Chinese investors as demand for the metals soar on current and forecast sales of electric vehicles.
Rare earths metals such as lithium are vital components in the manufacture of electric motors and batteries.
Over the past fortnight, the share price of rare earth and lithium players has soared.
Galaxy Resources (lithium) has shot up 100 per cent in the past week (now about 80c) and Argentinian lithium explorer Orocobre Limited is up almost 200 per cent (now 63c) in about the same period.
More companies are following the trend.
Lynas Corporation has signed a $522 million deal with Chinese conglomerate China Non-Ferrous Metal Mining Co. for a slice of its Mt Weld rare earth deposit near Laverton in WA.
The Mt Weld deposit is regarded as the richest in the world.
The investment will fast track the project that has recently stalled because of a lack of finance.
CNMC will control four seats of the board and 51.6 per cent of Lynas' capital once the two parts of the deal are completed.
It will be noticed, says Sam Berridge of StateOne Equities, that the Chinese have interests in about 95 per cent of the world rare earth producers.
That puts them in the high seat when it comes to the predicted explosion in electric propulsion for passenger cars.
Another WA company that has exposure to rare earths is Alkane Resources.
The company, though WA based, has projects in NSW.
Its Dubbo Zirconia project, 30km south of Dubbo, has processed 67 tonnes of ore to produce 1150kg of zirconium and 165kg of niobium.
It is trialling the recovery through the plant of yttrium and the heavy rare earths and also the recovery of light rare earth concentrates from the niobium stocks.
--------------------------------------------------
China Threatens U.S. Alt Energy Plans
By Ian Mathias
05/19/09 Baltimore, Maryland “Rare earths are more a Chinese thing than oil is an OPEC thing,” begins Byron King today. (Rare earths are hard-to-pronounce metals and minerals that, while in small supply, are found in seemingly every high-tech gadget around the world).
“The Chinese are running 95% of world output, and virtually all of the final refining and smelting… the U.S. left the biz about 10 years ago, and Japanese left it about four years ago.
“Rare earths are critical to all future ‘green’ energy, especially with things like permanent magnets for windmills (not to mention the rare earths that go into those ‘efficient’ light bulbs.) Every large windmill, for example, requires about 560 pounds of a rare earth called neodymium, for the permanent magnet within the turbine system. There’s no substitute for neodymium. People have gone through the entire periodic chart, and only neodymium will work in large permanent magnets.
“The U.S. has NO locale for manufacturing permanent magnets. None. Zilch.”
“The West had better get serious about rare earths or we’re forfeiting the key industries of the 21st century to China.”
--------------------------------------------------
Rare metals provide rare opportunities for investors
Gold may be a store of value, but some rare metals will play a much more important role in the technology age.
Jack Lifton
Published 5/10/2009
If gold had never existed, it would not have been missed. So far in human history, gold has had no utilitarian value, which means that its use is not critical to the construction or operation of any technology whatsoever. Critical here means that without a specific metal you cannot make the technological device desired, or if you can it will not have optimal properties.
Gold can have strategic value. That is to say that it is one of many materials that can serve the same necessary function. In the 14th century BCE, an Egyptian inventory of a nobleman’s burial treasures shows that a sky stone (meteoric iron) blade was valued at 40 times its own weight of silver! The potential for a meteoric iron standard didn’t last long after the common nature of iron ore and the mass production of iron for weapons was discovered and gold, silver and copper became -- probably in that order -- the coinage metals and remain primarily so today.
Copper first became a technology metal when its alloys bronze and brass became widely used to enable the manufacturing of reliable weapons up until the end of the 19th century. Copper attained to permanent technology metal status when its property as the most economical conductor of electricity made it into the nervous system of not only the industrial age but now of the age of technology.
Gold is a rare metal, but there are rarer ones. Gold’s remaining uses are as an arbitrary store of value -- as money -- and in the preparation of jewelry items, themselves intended to display wealth or maintain their value intrinsically.
Why invest in rare metals production? Almost all of the rare metals have evolved from minor metals to become the technology metals. The basic discoveries in the engineering, chemical and electronic properties of rare metals during and after World War II led to a search for natural resources that could be used to develop these newly discovered properties into practical, mass-produced devices, first for military use and then for daily use by everyone.
I am going to publish an organic listing the future potential of the rare and technology metals as the bases for practical mass-producible technologies. I will update the table and make changes in my recommendations as to whether or not you should buy, hold or sell investments, mainly in mining, in the production or end-use of my listed technology metals.
As a side note, this material also is being used as the basis of a talk entitled “Rare metals as rare opportunities for investors” at the Hard Assets Conference in New York on May 11.
I will do my best to explain concepts as we go along. I will begin by explaining why I have chosen the first group of “Rare Metals” in my “organic table.” They are the critical metals for twenty first century American industry chosen by the US National Academies, and their reasons for doing so are explained in great detail in the publication, “Minerals, Critical Minerals, and the U.S. Economy (2008), which is available free of charge on the Internet at books.nap.edu/openbook.php?record_id=12034&page=165#p… .
I will update on end-uses of the technology metals that are being proposed for mass production, such as the lithium-ion battery powered plug-in hybrid, and how the production rate of lithium will determine whether or not this technology ever becomes widespread or practical.
I will also be recommending individual rare metal miners as good investments for the short, medium and long term. My recommendations will not be based on whether or not a drill hole has found a trace of a rare metal on the company’s property but on a metric for evaluating rare metal mining opportunities that I will introduce on May 25. These company recommendations will also be organic, and I will be monitoring them to make sure that the metrics have not changed in a negative fashion.
Börse trägt das Risiko immer mit sich, die Gewinne hat sie nur manchmal dabei.
