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If you got burned in the past at junior mining investments by overly positive newsletter writers, sell side analysts or other (paid) sources which more often than not avoid to mention (hidden) risks or critical flaws, The Critical Investor goes a few steps further, and might provide a fresh,... More
  • Northern Minerals In Trading Halt: Probably A Very Positive PFS Release 3 comments
    Jun 23, 2014 7:06 AM

    It is a shame Northern Minerals doesn't have a US ticker, as it is the second best REE company I know, behind Tasman Metals. This means no SA article unfortunately. I have been following this company a bit since my REE articles in October 2013, and it worked hard after several delays, to have its PFS out in June, 2014. Now seems to be the time for this, as it asked for a trading halt today:

    If this TH is really about the PFS, I expect this study to be extremely positive, as the deposits have a very high percentage HREEs and are therefore very profitable, and earlier indications about capex promise to be very low (<A$200M). An after tax IRR of 50% or higher cannot be ruled out. Figures like this should easily take care of a 50% bump.

    More on this later this week.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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  • The Critical Investor
    , contributor
    Comments (2050) | Send Message
    Author’s reply » This was actually a negative surprise, they doubled their estimated capex and therefore their IRR came in at a modest 33%. Almost no price action so far. Disappointing, after Quest leaving the winners circle as well. Only Tasman left for now, let's see what their PFS capex looks like in Q4, 2014.
    25 Jun 2014, 08:36 AM Reply Like
  • jimp
    , contributor
    Comments (715) | Send Message
    What are your top 3 picks in the rare earth sector?
    Also, do you follow EMC Metals? Their focused on scandium.
    29 Jun 2014, 11:44 AM Reply Like
  • The Critical Investor
    , contributor
    Comments (2050) | Send Message
    Author’s reply » I would say Tasman by some distance first, after that Ucore and Greenland, maybe Namibia but it should speed up things a bit more as it is behind. Very good project, PEA is scheduled to be completed at the end of Q3 2014.
    Not really familiar with EMC, I know John Kaiser likes them. My problem with scandium is the very limited market for this metal, not enough demand yet. So any new added production would shift equilibrium and could bring down metal prices.
    1 Jul 2014, 06:25 AM Reply Like
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