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  • Valuing Mega Uranium After Sector And Uranium Price Meltdown - Not A Buy At Current Levels [View article]
    Paladin and Mega are two completely separate conversations. One is a current producer of uranium, while the other is a junior mining company developing a deposit that has the potential to become a mine.

    We like Paladin, but we were addressing here the junior uranium sector and companies such as Mega Uranium.
    Dec 1 11:42 AM | Likes Like |Link to Comment
  • Molycorp's Project Phoenix Rising Along With Its NPV [View article]
    For those enjoying a good laugh at the bus disclosure and our editor's youth, the bus was provided to all media members who were invited to Mountain Pass (approximately one dozen individuals)
    Apr 25 07:09 PM | 7 Likes Like |Link to Comment
  • Great Western Minerals Group Valuation Is Not So Great [View article]
    To address the issue regarding the financials, this piece was written prior to the fourth quarter results being made public. I held it back from publication because I was aware it would generate controversy and I wanted to double check everything in the model before I published an article on a company that strong backing from both institutions and public experts respected by retail rare earth investor base.

    It was part of a larger report on rare earth companies that I put together for subscribers (I put a note to such effect in the article at the top but it looks like the editor's removed it).

    As a result of the report being put together over a six week period, some things were impacted by new news (My Quest Rare Minerals DCF will have to be updated for the new resource estimate, etc.). My intent here is to share the result of the discount cash flow analysis that I did on Great Western. I was frankly surprised the model indicated Great Western appears to be fully valued.

    The best rebuttal I have seen so far to the valuation work has been the Byron report which assumes 40,000 tons of production this decade while the historical estimate at the South Africa mine assumes there is less than 30,000 tons. While I am aware the resource could be expanded, my research indicates there are better opportunities in the rare earth space where investors do not have to make as many optimistic assumptions in order to have the model generate upside. (I do not have to assume that the resource at Mountain Pass is 33% larger in order to generate upside for my valuation of Molycorp).

    I am not advocating that investors go short Great Western, because a rising tide will lift all boats. But my work indicates that there are better opportunities in the rare earth industry other than Great Western.

    As to the question of whether or not I am biased, let me share here my policy that I have shared with my subscribers. As a general rule I do not respond to comments that are not from my subscriber base. I am making an exception here because the article was published without my note at the top about this being a portion of a larger report. Also, I believe that when dealing with free research the greatest endorsement an analyst can make is to put his money where is mouth is - which I have done.

    As I wrote later on in The Strategist Special Rare Earth Report, I will re-visit Great Western once I have seen the results of the feasibility study.

    As a final note, at no point in the article did I deny that Molycorp and Great Western have a history. It is just my judgement that based on the letter of intent that Molycorp has chosen to work closer with Neo Materials. Also I would direct investors to listen to the AS Silmet conference call where the CEO of Molycorp said that the only other European rare earth facility was the one in France - which suggests to me that Great Western is not on Molycorp's radar.

    Jon Christian Evensen
    Founder & Editor in Chief
    The Strategist Newsletter
    Apr 17 04:01 PM | 3 Likes Like |Link to Comment
  • Three Stocks Mistakenly Thought to Be Rare Earth Stocks [View article]
    Molybdenum is not considered a rare earth element in the context of the rare earth thesis. The rare earths consist of the lanthanide elements period on the periodic table plus the elements in the third group such as Sc, Y, and La.

    This is not to takeaway from the merits of Mo as an investment thesis, but it does not qualify for consideration as a rare earth element as it has been classified by the industry.

    The Strategist Team
    Feb 4 11:48 AM | 3 Likes Like |Link to Comment
  • Molycorp Doubles Production: Major Blow for Junior Rare Earth Stocks [View article]

    For those who asked for our thoughts on specific junior rare earth companies, we refer you to the link above. Our thoughts remain the same. Note this is the same article linked to twice in this article.
    Jan 26 09:59 AM | 2 Likes Like |Link to Comment
  • Please raise my taxes, Warren Buffett says: “If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further. But I think that people at the high end - people like myself - should be paying a lot more in taxes. We have it better than we’ve ever had it.”  [View news story]
    Warren Buffet thinks people like Warren Buffet should pay more in taxes?

    No offense Warren, but the only other person remotely like you in the USA financially is Bill Gates.

    There is a link on the Treasury website where you can make a donation towards paying down the national deficit in addition to your tax bill though.
    Nov 22 02:35 PM | 8 Likes Like |Link to Comment