Despite all the problems: Rare Earth - Starts a recovery?


It says a lot about the state of Rare earth-Business, that the third-largest company outside of China - the owner of one of the most important projects for so-called heavy rare earths - with less than 100 My. Dollar is evaluated.

It is the Australian Northern Minerals (WKN A0LBN5), which presents a definitive feasibility study on its Browns project in Western Australia recently. This review reflects the decline in investor confidence in the sector since the bubble of the rare earth prices in 2011 again. However, it looks like, as the tide could turn slowly. For, it seems, draws the demand for the not so rare metals slowly to, after due to the almost absurdly high prices 2011 and 2012 came almost to a standstill.

The market is still relatively opaque, but there are reports, that the price of certain heavy rare earth metals - rose - anyway always the most valuable. So shall the terbium price since November by almost 50% and dysprosium price by more than 20% be increased. In Europe, prices have recently risen, it said.

And it seems also, China has started again, Rare Earth - in particular heavy rare earths - to lay stockpiled. And despite the problems with the World Trade Organization Beijing is apparently to regulate still able, the quantities are exported.

For more than a decade, the West tries, to reduce the almost complete dependence on China. But Beijing still dominates and many players outside the People's Republic have now established close links with partners from there. Although these companies are able to complete their own delivery arrangements, but there is little doubt, want them to operate within the environment of the Chinese Rare Earth sector and China remain the dominant player. Even the largest producer outside of China Molycorp (WKN A1C2G7) only has a market capitalization of approximately 208 My. USD and in second place is the Australian Lynas Corp. (WKN 871899) with just 175 My. Dollar Börsenbewertung.

But despite all the problems and the decline in interest in the rare earth sector, some companies make significant progress, including, for example Greenland Minerals & Energy (WKN A0JM17) is. The company is nearing completion of a feasibility study on its rare earths- and uranium project Kvanefjeld in Greenland.

Making good progress but also the Canadian Commerce Resources (WKN A0J2Q3) or with its Eldor Project. the deposit Ashram. Unlike the competition Commerce is working on the production of a - easier and cheaper to be prepared - concentrate, which could then be processed in other plants. Commerce has now taken a small pilot plant, and wishes to establish a first test this year, which can then be used, to be able to tackle the operators of external separation systems.

If the rare earth prices can actually continue to recover, could indicate, that the sector has reached a level sustainable levels. And then it would sooner or later the stock market valuation of companies in the sector to rise again to a different level.

Risk Warning: The GOLD INVEST Media Ltd. offers editors, Agencies, and organizations, Comments, To publish analysis and news on These contents are for information of the readers and do not represent whatsoever call to action, either explicitly or implicitly, must be understood as a warranty of any price movements. Furthermore, they replaced in no way an individual expert investment advice. Readers, the basis of the information provided here or investment decisions. Carry out transactions, acting entirely at your own risk. The purchase of securities involves high risks, which can lead to a total loss of the capital. The GOLD INVEST Media GmbH and its authors include any liability for financial loss or the content-to-dateness, Accuracy, Adequacy and completeness of Article expressly offered here. Please also refer to our Terms of Use.

According to Section 34b of the German Securities Trading Act, we would like to point out, dass Partner, Can hold or keep authors and contributors of the GOLD INVEST Media GmbH shares of each company mentioned and thus a potential conflict of interest. We can not exclude also, that other market letters, Media and Research Companies Our recommended values ​​for the same period to discuss. Therefore, it may in this period to the symmetric information- and opinion generation come. Further, between the above-mentioned companies and the GOLD INVEST Media GmbH, a consulting- or other service contract to exist or have existed, which may optionally also a conflict of interest.


This entry was posted in Corporations of the rare earths, Rare earth, Rare earths General, Rare earth and the economy, Strategic Metals and tagged , , , , , , , , , , . Bookmark the permalink.

Comments are closed.