ARU - Arafura Rare Earths

[Starsweeper]

@all investors in ARU

I have some simple question to you:



I bought a lot of this shares in 2007 here in Frankfurt. Since this time the price is going down. I for my one think, here we have a long term investment. They say the mine 'll start in 2010.

What was the reason to finishe this thread?

What are you thinking abuot this invest?

Thanks for an answer from some of you.

Sweeper

 

[enigmatic]

I see a great future in ARU.
they have recently increased there ore body by 60%.

But like you said it is a long termer the plant was original 2011-2012.
I believe it is was not postponed to 2012-2013 which was the reason for the drop in SP no one wants to wait arround for a spec when there are so many others arround.

 

[Starsweeper]

I see a great future in ARU.
they have recently increased there ore body by 60%.

But like you said it is a long termer the plant was original 2011-2012.
I believe it is was not postponed to 2012-2013 which was the reason for the drop in SP no one wants to wait arround for a spec when there are so many others arround.

Hi enigmatic,

here, to your information, what Europa says this month to rare earth elements:

I think, it's very important for us!

Wishe you a successful, healthy year 2009

Sweeper

The EC is also proposing a new industrial mineral strategy for EU which focuses on the security supply of minerals used in high tech industries, such as rare earth elements and lithium.
The EC report cites “export taxes and quotas, along with subsidies, price-fixing, dual pricing systems, and restrictive investment rules” as unfair restrictions on EU manufactories, compounded with low cost imports of high tech products from non-EU countries.
“China, Russia, Ukraine, Argentina, South Africa and India are among the key countries involved in applying such measures, while in many cases also benefiting from reduced or duty-free access to the EU market for related finished products, placing many EU industrial sectors at a competitive disadvantage”, said the report.
The EC recommends that the EU pursue dialogue with industrialising countries, such as China and Russia, with a view to remove distortive measures that influence trade of minerals. It also wants WTO regulations on exports to be enforced and any breach to be challenged by the EU with all mechanisms available to settle disputes.
The proposal comes as the EC recognises that production of certain industrial minerals, vital to the economy and industry of member states, are dominated by a small number of countries. China accounts for 95 % of global rare earths production, which is necessary for the production of autocatalysis, fuel cells, and portable handheld devices.
Around 60 % of lithium production is in Chile and demand is expected to grow as the car industry turns to batteries.
The EC is wary of the impact of mineral supply, since the boom in mobile phones led to a sudden availability crisis for tantalum in 2000, and would like to avoid similar situation.

 

[Miner]

Whereas ARU has a great future but the time line of getting fruit of this future is far ahead.

IMO the future is much ahead for LYC holders.

Having said that with automobile industry's fate and so many closures the fate of any rare earth element manufacturers like LYC or ARU is very thin in next 12 months.

Please do your research and I do not hold LYC or ARU.

 

[ragchewer]

Here's some news from Mining Weekly.com

http://www.miningweekly.com/article/another-chinese-company-makes-oz-inroads-2009-04-17

Rags

 

[ragchewer]

Here's long term look at the ARU monthly chart,

A large 5 wave corrective structure where waves overlap and now the possibility of a monthly isolation occurring this month if price closes above the high of last month at 36c.

There's clearly a pivotal point on the monthly at 44c 3 months back and possibly one around 36c--38c on the daily chart around last months high.

I have an expectation of a re rating for ARU very soon,all in good time.

Rags

 

[Kalmsg]

Jeez you are on the money Rags..
Will be interesting to watch and see how we go.

But certainly going to be cashed up.

 

[ragchewer]

Hi KalmsG,
Nice to see you again my old friend,

Yes ARU looks like breaking out through the 38c mark quite soon and should get going after that.The monthly chart looks great for the longer term.

You recon there could be a good copper plant to buy up there in the NT LOL ,well atleast i can laugh now it's over.

Held up well today i thought,could have flushed out the weak hands also.

cheers mate "Time will tell",,lol,,already has the voyage across the sea is won by the one that stays a float.

Rags

 

[ragchewer]

well there's the pop out and an isolation on the monthly,

too much news of chinese money coming into the camp,

ARU looking for another up day tomorrow and then maybe a consolidation into a flag type of pattern and then further upside to close the monthly chart with sincere move as most Uranium stocks across the board heat up.

Rags

 

[Family_Guy]

I got this tip from one of the breakout alert threads and got on a couple of days ago at 35c and i was one of the dudes that dumped on the bell this arvo. Walked in at 5mins to 4, paniked because i saw it had passed my goal and sold. Wondered why BLR had gone nuts late this arvo but i didnt sell that. Funny what a little reading and knowledge throws up. I'd like to thank whoever it was that posted the chart a few days ago. Cheers.

 

[ragchewer]

greetings Family Guy,

that would have been me,,,well done on the trade hope you have many more to come.

take care
Rags

 

[ragchewer]

***Rare Earths Make a Move

Both of our rare earths plays have had big weeks. There was some directly beneficial news for Arafura which I'll go through in a moment. As for the advancement in the Lynas share price, well, I can only deduce that either someone knows something we don't, or that it's just receiving the benefit of market action in other rare earths stocks globally. Oh, and the re-emergence of the China story. I'll keep you informed if anything does develop.

Anyway, back to Arafura. Take a look at the chart below that includes yesterday's price movement...

There's little doubt that it's being influenced by a gradual increase in volumes over the post month. And why not, the news has been good. The latest news is the decision by Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co Ltd - thankfully labelled ECE for short - to fund up to $8 million in the Jervois Project joint venture.

Jervois is an old project for Arafura, but now, thanks to ECE taking a 51% stake in the project, drilling can begin to explore the Vanadium and iron ore deposits that previous testing has indicated.

And if you believe in the investment theory of buy low/sell high, buying into an exploration venture when the price has fallen by 75% in the last year...

(Chart of price of vanadium falling)...

There are plenty of horror stories around of mining companies paying over the odds for a resource at the top of the market. We are sure there are far fewer stories of opportunistic companies buying in when the market is at the bottom.

I'm sure this would have been a fairly simple decision for Arafura management to take. Lock away $8 million and cement the relationship further with ECE on the rare earths side by giving up half the stake in an undeveloped project that was unlikely to get much attention from Arafura by itself anyway.

Looks like a good win-win deal for both sides.

Australian Small Cap Investigator
Friday, 24 April 2009
Melbourne, Australia
By Kris Sayce

 

[enigmatic]

well after talking this up for the past few years its good to see its finally getting the re-rating it has deserved for quite some time.. heading upwards quite strong with another 23% today had this one for the annual comp looking good so far..

DYOR

 

[johannlo]

Why is this particular stock so volatile? 15% up one day, 10% down the next, repeat and rinse.

Compare to the other well known rare earths play LYC which has been much more stable.

Is there a reason why this stock swings so much?

 

[exgeo]

From Timesonline. From The TimesMay 28, 2009.............................................. ...............................................

Crunch looms for green technology as China tightens grip on rare-earth metalsLeo Lewis, Asia Business Correspondent Japan’s increasingly frantic efforts to lead the world in green technology have put it on a collision course with the ambitions of China and dragged both government and industry into the murky realm of large-scale mineral smuggling.

The robust international trade in illegally mined, quota-busting rare-earth metals highlights China’s near monopoly on the raw materials for environmental technology – a 95 per cent dominance of world supply that is likely to become more widely noticed as China tightens its grip.

The weight and magnetic properties of rare-earth metals have made them important for wind turbines, essential to hybrid cars, and indispensable if the world ever hopes to covert to fully electric vehicles.

One mining company president told The Times that governments that had promised a way out of economic turmoil with bold schemes to subsidise green cars, solar panels and other environmental technology had “spoken without understanding the upstream of modern products”.

Don Burbar, the chief executive of Avalon Rare Metals, said: “The crux of the matter is that there are now a lot of technologies that can’t work without rare earths, and China is currently in effective control of the global supply. China has positioned itself to retain control, and meanwhile politicians around the world do not appreciate how the supply side of green technology works.”

In Japan, the world’s biggest importer of rare-earth metals, more than 10,000 tonnes per year – about a fifth of the country’s total annual consumption – are thought to enter the country through a thriving black import network without which Japan would already be in a severe supply crisis, a senior government official said.
China has been lowering its export quotas for rare-earth metals by about 6 per cent annually since the start of the decade, with Japan expected to be allotted only 38,000 tonnes in 2009. Toyota and Honda alone will consume about that quantity and experts in Australia have predicted a wider global supply crunch within three years as demand surges beyond existing refinery and extraction capacity.

But rare-earth specialists at two of Japan’s largest trading houses said that loopholes and smuggling substantially raise the quantities of rare metals that enter Japan each year. Kazunori Fukuda, deputy director of the nonferrous metals division at the Ministry of Economy, Trade and Industry, said: “If the Chinese export quota limits were the reality of what comes into Japan each year, we would be even more worried than we already are. All green technology depends on rare-earth metals and all global trade in rare earth depends on China.”

Ginya Adachi, from the Japanese Rare Earth Association, said that China’s dominance of rare earths would serve the developed world with a rude shock about global trade: Japan, America and Europe must now realise that some markets are not real, but political. But he added: “The Chinese Government wants full control but it doesn’t have it. It is not in control of the rare-earths market in the same way that Opec is in control of oil. Local miners will sell even if the government tries to control the price or the quotas.”

The Japanese Government has begun looking for alternative supply sources in Vietnam and elsewhere; rare earths are not as rare as the name suggests. There are potential supplies around the world, but prospective miners in Australia and the US are experiencing financing difficulties and as soon as new facilities have emerged in Asia and elsewhere, Chinese companies have quickly become majority investors

 

[enigmatic]

I thought i raise this one up again its been flying the last few weeks and with construction.. yes i know 2011 but its getting closer it is definitely one to watch.

With China tightening its grip on rare earth I can only see the prices heading North worth a look even at the current price.

DYOR.

 

[enigmatic]

Up another 24% today and still no interest. Playing this one day to day but still see alot of upside. will we head back to the high of 2007 could be interesting once everyone factors in the production of the mine and the value of Rare Earth. to the ever "Clean" industry

 

[enigmatic]

No one seems to be paying this one any notice except for ASX..

They got a speeding ticket today 78cents 8th of sept to $1.04 today although i have been following since 46cents 13th of August. Wonder if this has more legs.. 15% up on a down day isn't to bad

 

[quarky]

jumped into this at 1.26 early today.
then, saw the price slide all the way down for a close of 1.19
damn.

then, i come across this online


Arafura set to receive $23m from Chinese group

East China Mineral Exploration interested in future JV with rare metals explorer.

 

[brettc4]

I am concerned about the departure of their CEO who has been there since 2004.

I picked some up at $0.515 so I am happy with it's performance to date, just not sure how the market reaction will play out. Will need to keep a close eye on this today and get out if it looks like the slide will continue.