Molycorp: Rare Earth Leader Now Dirt Cheap [View article]
"Over a century ago, the oil industry was in the process of being consolidated by Rockefeller, and being broken up by Teddy Roosevelt. So your comparison fails."
Reminds me of China consolidating their hold on the REE space at the beginning of this century, and the current round of hopefuls (MCP and Lynas, and some others down the road) trying to break up that stranglehold....I think Chihawk is on to something...
5 Resource Companies Ready To Rally Significantly [View article]
I'm well versed in the uranium explorers, of which Cameco is not one. The fact that they are buying Hathor which is an explorer hardly justifies your previous comment due to the fact the company has revenues from actual production and turns a profit...Cameco DOES make money NOW.
Due to the volatility on the juniors (which are explorers) and their speculative nature, they outperform in good times and under perform in bad. That is why that comment says what it does. For anyone who thinks otherwise, I would encourage them to take a look at the charts and see that in a great majority of them that holds true.
5 Resource Companies Ready To Rally Significantly [View article]
If you look at CCJ, you will find that they are actually a PRODUCER. Also, they have a very low cost and long-term contracts. CCJ is profitable, and should stay so as long as U3O8 prices do not collapse or input costs to mining rise faster than the underlying production.
5 Resource Companies Ready To Rally Significantly [View article]
Geoffrey, I think MCP is most like CCJ is to its industry. Most of the same investors are or were in both industries, so take a look at CCJ from the last 5 years, and I think you will see why we think MCP can rebound if the economy turns around and we avoid any further issues in Europe.
5 Resource Companies Ready To Rally Significantly [View article]
It is safe to say most stocks were down pretty hard today, including POT. And yes people do cut back on food in lean times as we mentioned. If Europe does not get their act together quick and implodes, $30 would probably be kind. Hard to say whether a recession is coming, already here or just teasing us before the economy turns around, but it would be nice to see everyone in Washington take ownership on the jobs (or lack thereof) issue...that is the main problem here in the US in my opinion.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Yes, but what the SEC and Congress were doing with this law, passed many years ago, was to preclude companies from circumventing US law and raising capital while not being registered with the US government. One could imagine many Mexican/Haitian based comanies raising funds in the US if this was not the law (just an example). I think most investors in the junior resource sector, rare earths especially, are extremely proactive and follow their companies closely. Look at chihawk and some of his friends and the conversations they have on SA. For trading purposes its a necessity b/c you have to see where the shares are trading on the dually listed shares, so one should pick up on the news.
Not trying to single you out sarcastic, just trying to clean up the misinformation from whome123 who I feel was/is purposefully posting information that is misleading with malicious intent to confuse investors is wrong. Thus my feeling that it needed to be cleared up. They did nothing wrong, followed securities law and to say otherwise is simply wrong.
"The securities have not been and will not be registered under the U.S. Securities Act or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, a "U.S. Person" (as defined in Regulation S under the U.S. Securities Act) or persons in the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the Company's securities set out herein in the United States, or to, or for the benefit or account of, a U.S. Person or person in the United States."
Once the dual listing was achieved, I am guessing the lawyers began requiring it...notice the companies that are trying for dual listings these days, they have been issuing press releases via Canada only distribution networks....noticed it happening 2x recently and many others issuing dual press releases cleaned up for us distribution with same disclaimer. That's the SEC protecting investors.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Good call sarcastic, and thanks for looking the dates and information up. Must have been thinking of Avalon's first day b/c looked that up for something we were working on today. But SEDAR is the Canadian equivalent of EDGAR, which shows they filed in Canada and not the US. Appears they followed the law. Thanks again Sarcastic.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
whome123, you seem to be everywhere - with your various aliases- with the same issues, which have been covered many times. However, lets go over it once again. I really do hope you take the time to read it and you are curious to get to the facts, rather than an individual spewing untruths out of spite or trying to work your book.
#1 Infrastructure- Yes the actual land has little infrastructure on it as it is exploratioin property so no paved roads or anything of that nature. Please see their PEA they issued previously, and you will see the infrastructure we are referring to. Anyone in the mining industry realizes that highways, interstates, and high-voltage power lines nearby separates the projects that do get developed from those that do not. Look at the huge gold deposits in Canada that are sitting there undeveloped because they lack infrastructure. Worth billions if you had the infrastructure nearby to bring the deposits online, but without it those projects have been dormant until recent talk of high voltage power being run through the area. This infrastructure is part of the reason why their PEA was so positive (referring to the low costs when compared to say Avalon for instance)
#2 The grade is solid, along with the tonnage. If you have high grade ore, less tonnage is required (see Cigar Lake for uranium and possibly GWG's 'Steen' in S. Africa), lower grade more tonnage. Bear Lodge has high grade. If we are discussing grade alone I would encourage you to look around as there ARE projects with much lower grade being "talked" about as far as developing goes. Once again, your "fact" is wrong!
#3 Not even worth addressing with a serious response.
#4 Yes permitting is political, however if the USA wants deposits within the country to produce REEs in order to stockpile, provide security of supply going forward, or some other reason this company becomes worth more overnight...all on the whim of some Washington politicos. This seems more likely than Washington passing laws to ban it. As far as this being a Canadian company on US soil, they are our closest ally and a huge trade partner (we import more oil from them than anyone else btw).
#5 Their share structure is great when you look at resource companies. Lynas has over a billion shares outstanding, many resource companies do. Great Western has somewhere north of 400 million I believe. REE has just over 10% of that! Tight share structure, and it is feasible to think they could get to production with less than 100 million outstanding if they had to issue equity to raise 100% of the cost of their planned project.
MOST IMPORTANT - You need to understand securities law to understand why they have to issue that little statement at the bottom of their press releases. It was required by the SEC because they were issuing shares in Canada, not the US thus the paperwork was not filed with US securities regulators but rather the Canadian ones! See other Canadian companies who issue stock and that same statement is at the bottom...I know for a fact you will find it on some other rare earth stocks in Canada. Don't hold me to it, however I believe that was filed to be sold prior to their listing in America - I would look it up, but doing this on the fly and no notes around, but good homework for you.
#6 They sold shares to raise cash to develop the project and they hope to bring it closer to production. They have more cash-on-hand than 99% of the rare earth companies! I said balance sheet, not income statement...there is a difference!
#7 I never said anything about office space or # of employees, so please don't put words in my mouth! This office space issue raised by some short seller who lost his shirt last year is a dead horse that you guys just keep beating. If you knew anything about the junior resource sector you would know that many of them share management teams, geologists, office space and corporate secretaries. How many full-time office employees should an exploration and development company have? Throughout the industry it is not many - usually it is the President/CEO and a secretary they share with others.
Molycorp and Lynas are the cream of the crop at this point. The next wave of hopefuls are next in line in the tier we referred to. Just to clarify, based on the above that is why REE is in that group.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Chihawk,
Nice to get some intelligent commenting for a change rather than the regurgitated dribble rare earth articles tend to attract.
The entire transcript is available on our website, but to be direct, he stated that they would be after Moly and Lynas, which I took to mean after both expansions of course based on the timeline REE supplied me and my past research notes on MCP and LYC.AX/LYSCF.PK. He mentioned Arafura by name and mentioned that they are either in the first wave or just right after, so yes there does exist that element of risk.
Lynas Malawi I am looking into, appears to be a nice project they have there just trying to figure out historical metallurgical work, etc that may exist (derisking of the project). In regards to Steenkampskraal (Great Western) and Zandkopsdrift (Frontier) both are S. African projects and historical too. 'Steen' is a very high grade, low tonnage project at this point and heavily skewed to the HREEs...it would be nice if they could expand the resource b/c at this point I think they will use up most, if not all in-house.
One point I think is really important and that you can probably appreciate, is that the hydrometallurgy is going to be the make or break for many of these projects. I've talked with a few executives and the separation itself could derail many projects...some things work great in labs and when you try to apply them in the field...well it does not always go according to plan. If it is as difficult to 'crack' these deposits today as it was in the past, many of the projects that did not have work done on them could be a minimum of 5 yrs off based on that alone, and maybe 10 yrs at most. Yes, bearish for that particular stock, but very bullish for the industry at large.
If you look at all the companies out there, with their various projects, and put them into tiers, REE has factors (infrastructure, grade, location, politics, share structure, balance sheet, etc.) that have caused us to put it into the top tier for those in the exploration and development category just under Lynas and Molycorp which we have in the top tier overall. I think from our other articles, you can figure the ones we like best, however an article is being put together to profile some Australian REE plays which appear undervalued at this time.
Hope this came across clear, as there are a lot of different topics trying to hit on. Appreciate the research and questions you come up with as well.
Why Rare Earths May Have Room to Run [View article]
I do think Lynas and Molycorp are two great REE plays. Early movers in the industry and should be big winners. Regarding the process, I was just pointing out that until that plant, has that ore being processed through it, there are no guarantees. Companies have opened mines mining easily separated metals and had trouble getting the expected results. No one mined Lynas' mine before which is why it is still a risk. Yes Molycorp could fail in their timeline, but all this is why I have put investors in both stocks, not just one. Diversification. You don't have all your eggs in the one winner, but also not in the one loser if there were one. If Lynas drops the ball, it goes down, Moly and the rest up (juniors more so). Moly screws up, the situation is reversed with the juniors still rocketing. Look no further than the Dominion Mine down in S. Africa for a real head scratcher.
This is not an easy industry to jump into, and the risks are real. Everyone should be diversifying to some extent. Also, pick a multiple for the industry and use my numbers for revenues at today's prices. Divide by number of shares and play with the prices. That is one of the tools we have, which has been very helpful when evaluating the industry for potential. You will see both stocks, if they can execute will be winners. And yes, they each have their own pros and cons (Lynas first to realize revenues and hopefully profits, and Moly later but planned larger production and market share among other things).
Why Rare Earths May Have Room to Run [View article]
Guys, I think that the arguing back and forth is futile. Both companies have their pros and cons and both should be owned in my opinion. If you believe in rare earths, you want those companies which will be first to production. Lynas will be first, however we have not seen their formula for separating the REEs work on a commercial scale yet....Molycorp we have, however they are refurbishing/rebuilding their mine workings. I have not said this before, but I suspect we shall see some production shortfalls as these mines come online, it happened with our uranium juniors last time (think Paladin, UraniumOne, UrAsia, etc. before they were majors!) due to issues with metallurgy and getting the supply chain for mine supplies ironed out and is quite common for companies bringing projects into production who have no previous track record of their own (of course their people have that experience, but usually they are not a team having worked with each other before). I think you put Lynas and Molycorp in their own leage, followed by the next into production right under.
Why Rare Earths May Have Room to Run [View article]
Stone, regarding the bonanza gold, could you be confusing Tasman with Mawson? same team behind them, so you probably own both, but i think you are referring to Mawson and not Tasman in regards to the bonanza gold. Or did I miss something?
Why Rare Earths May Have Room to Run [View article]
I think we all know where I stand on the REEs. One point about Lynas if I may:
Looking at the share price in comparison to others is not really fair. Part of what we look at here at theinvestar.com is a market capitalization for the company and any dilution that will take place to bring projects online. Lynas's market cap has gone up considerably, and has further room to run, but most of the market cap run-up was absorbed in the share issuance and not capital gains for investors. When one looks at the share performance it looks really bad, but when the market cap is looked at, it is not that bleak of a picture.
But when investing capital gains are the point. Just wanted to point out the reason Lynas's performance looks so bad.
Molycorp: Rare Earth Leader Now Dirt Cheap [View article]
by Teddy Roosevelt. So your comparison fails."
Reminds me of China consolidating their hold on the REE space at the beginning of this century, and the current round of hopefuls (MCP and Lynas, and some others down the road) trying to break up that stranglehold....I think Chihawk is on to something...
5 Resource Companies Ready To Rally Significantly [View article]
Due to the volatility on the juniors (which are explorers) and their speculative nature, they outperform in good times and under perform in bad. That is why that comment says what it does. For anyone who thinks otherwise, I would encourage them to take a look at the charts and see that in a great majority of them that holds true.
5 Resource Companies Ready To Rally Significantly [View article]
5 Resource Companies Ready To Rally Significantly [View article]
5 Resource Companies Ready To Rally Significantly [View article]
Molybdenum Just Keeps Getting Better and Better [View article]
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Not trying to single you out sarcastic, just trying to clean up the misinformation from whome123 who I feel was/is purposefully posting information that is misleading with malicious intent to confuse investors is wrong. Thus my feeling that it needed to be cleared up. They did nothing wrong, followed securities law and to say otherwise is simply wrong.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
www.rareelementresourc...
From Release:
"The securities have not been and will not be registered under the U.S. Securities Act or the securities laws of any state of the United States, and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, a "U.S. Person" (as defined in Regulation S under the U.S. Securities Act) or persons in the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States or in reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the Company's securities set out herein in the United States, or to, or for the benefit or account of, a U.S. Person or person in the United States."
Once the dual listing was achieved, I am guessing the lawyers began requiring it...notice the companies that are trying for dual listings these days, they have been issuing press releases via Canada only distribution networks....noticed it happening 2x recently and many others issuing dual press releases cleaned up for us distribution with same disclaimer. That's the SEC protecting investors.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Rare Element Resources: Bright Prospects for This Mining Play [View article]
#1 Infrastructure- Yes the actual land has little infrastructure on it as it is exploratioin property so no paved roads or anything of that nature. Please see their PEA they issued previously, and you will see the infrastructure we are referring to. Anyone in the mining industry realizes that highways, interstates, and high-voltage power lines nearby separates the projects that do get developed from those that do not. Look at the huge gold deposits in Canada that are sitting there undeveloped because they lack infrastructure. Worth billions if you had the infrastructure nearby to bring the deposits online, but without it those projects have been dormant until recent talk of high voltage power being run through the area. This infrastructure is part of the reason why their PEA was so positive (referring to the low costs when compared to say Avalon for instance)
#2 The grade is solid, along with the tonnage. If you have high grade ore, less tonnage is required (see Cigar Lake for uranium and possibly GWG's 'Steen' in S. Africa), lower grade more tonnage. Bear Lodge has high grade. If we are discussing grade alone I would encourage you to look around as there ARE projects with much lower grade being "talked" about as far as developing goes. Once again, your "fact" is wrong!
#3 Not even worth addressing with a serious response.
#4 Yes permitting is political, however if the USA wants deposits within the country to produce REEs in order to stockpile, provide security of supply going forward, or some other reason this company becomes worth more overnight...all on the whim of some Washington politicos. This seems more likely than Washington passing laws to ban it. As far as this being a Canadian company on US soil, they are our closest ally and a huge trade partner (we import more oil from them than anyone else btw).
#5 Their share structure is great when you look at resource companies. Lynas has over a billion shares outstanding, many resource companies do. Great Western has somewhere north of 400 million I believe. REE has just over 10% of that! Tight share structure, and it is feasible to think they could get to production with less than 100 million outstanding if they had to issue equity to raise 100% of the cost of their planned project.
MOST IMPORTANT - You need to understand securities law to understand why they have to issue that little statement at the bottom of their press releases. It was required by the SEC because they were issuing shares in Canada, not the US thus the paperwork was not filed with US securities regulators but rather the Canadian ones! See other Canadian companies who issue stock and that same statement is at the bottom...I know for a fact you will find it on some other rare earth stocks in Canada. Don't hold me to it, however I believe that was filed to be sold prior to their listing in America - I would look it up, but doing this on the fly and no notes around, but good homework for you.
#6 They sold shares to raise cash to develop the project and they hope to bring it closer to production. They have more cash-on-hand than 99% of the rare earth companies! I said balance sheet, not income statement...there is a difference!
#7 I never said anything about office space or # of employees, so please don't put words in my mouth! This office space issue raised by some short seller who lost his shirt last year is a dead horse that you guys just keep beating. If you knew anything about the junior resource sector you would know that many of them share management teams, geologists, office space and corporate secretaries. How many full-time office employees should an exploration and development company have? Throughout the industry it is not many - usually it is the President/CEO and a secretary they share with others.
Molycorp and Lynas are the cream of the crop at this point. The next wave of hopefuls are next in line in the tier we referred to. Just to clarify, based on the above that is why REE is in that group.
Rare Element Resources: Bright Prospects for This Mining Play [View article]
Nice to get some intelligent commenting for a change rather than the regurgitated dribble rare earth articles tend to attract.
The entire transcript is available on our website, but to be direct, he stated that they would be after Moly and Lynas, which I took to mean after both expansions of course based on the timeline REE supplied me and my past research notes on MCP and LYC.AX/LYSCF.PK. He mentioned Arafura by name and mentioned that they are either in the first wave or just right after, so yes there does exist that element of risk.
Lynas Malawi I am looking into, appears to be a nice project they have there just trying to figure out historical metallurgical work, etc that may exist (derisking of the project). In regards to Steenkampskraal (Great Western) and Zandkopsdrift (Frontier) both are S. African projects and historical too. 'Steen' is a very high grade, low tonnage project at this point and heavily skewed to the HREEs...it would be nice if they could expand the resource b/c at this point I think they will use up most, if not all in-house.
One point I think is really important and that you can probably appreciate, is that the hydrometallurgy is going to be the make or break for many of these projects. I've talked with a few executives and the separation itself could derail many projects...some things work great in labs and when you try to apply them in the field...well it does not always go according to plan. If it is as difficult to 'crack' these deposits today as it was in the past, many of the projects that did not have work done on them could be a minimum of 5 yrs off based on that alone, and maybe 10 yrs at most. Yes, bearish for that particular stock, but very bullish for the industry at large.
If you look at all the companies out there, with their various projects, and put them into tiers, REE has factors (infrastructure, grade, location, politics, share structure, balance sheet, etc.) that have caused us to put it into the top tier for those in the exploration and development category just under Lynas and Molycorp which we have in the top tier overall. I think from our other articles, you can figure the ones we like best, however an article is being put together to profile some Australian REE plays which appear undervalued at this time.
Hope this came across clear, as there are a lot of different topics trying to hit on. Appreciate the research and questions you come up with as well.
Why Rare Earths May Have Room to Run [View article]
This is not an easy industry to jump into, and the risks are real. Everyone should be diversifying to some extent. Also, pick a multiple for the industry and use my numbers for revenues at today's prices. Divide by number of shares and play with the prices. That is one of the tools we have, which has been very helpful when evaluating the industry for potential. You will see both stocks, if they can execute will be winners. And yes, they each have their own pros and cons (Lynas first to realize revenues and hopefully profits, and Moly later but planned larger production and market share among other things).
Why Rare Earths May Have Room to Run [View article]
Why Rare Earths May Have Room to Run [View article]
Why Rare Earths May Have Room to Run [View article]
Looking at the share price in comparison to others is not really fair. Part of what we look at here at theinvestar.com is a market capitalization for the company and any dilution that will take place to bring projects online. Lynas's market cap has gone up considerably, and has further room to run, but most of the market cap run-up was absorbed in the share issuance and not capital gains for investors. When one looks at the share performance it looks really bad, but when the market cap is looked at, it is not that bleak of a picture.
But when investing capital gains are the point. Just wanted to point out the reason Lynas's performance looks so bad.