Australian (ASX) Stock Market Forum

Rare Earths

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ParleVouFrancois said:
A somewhat backdoor play to ORM would be to buy MLM, IIRC they have a significant holding in ORM, as well as diversified holdings in other companies. MLM is also trading significantly below NTA, and has very large scandium holdings. I would buy in but lack of capital currently means I can only chase the companies I think have the shortest turn around time for a decent return, MLM seems to me to be a good long term play in minerals.

:2twocents
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Hi PVF, thanks but to be honest, I can't think of anything worse than investing in a spec company which has diversified interests in other spec companies.

ORM is heavily focused on REEs. Yes MLM holds 30% and has the same directors, but that doesn't mean that it's share price will move (as has been the case). As REE is the hot sector, why diversify through a company like MLM? And if anybody does wish to diversify, why not just invest less in ORM and spend the rest on whichever ASX companies you choose?

One of the reasons why I am attracted to ORM is that MLM own 30% ie less free float about (Top 20=80%). This means that on good results from the upcoming drills, ORM should fly at MLM's expense.:2twocents
 
Wait what, MLM have shares in ORM, and if it "flies" it'll be at the expense of MLM? Forgive me if I'm a bit confused at that but could you explain a bit more in depth.

I like the idea of MLM, a company with holdings in several exploration companies with a total NTA of many times it's MC, surely this can't be a bad thing (perhaps my investment philosophy is flawed??). A more extreme example of this would be HRS for example, two weeks ago it was trading at around 20 cents or about 20 million, and it already owned 20 million worth in Tiaro coal and additional shares in Australian Bauxite. WBA is another example of this, currently has net assets on it's balance sheet (approx 20 million), and on top of that it owns 20% of Tassal Group, worth 40 million. Surely investing in a company which owns more than it's MC in shares can only be a positive? I'm willing to hear any reasons but it just seems so counter intuitive, if anything the shares act as a backstop to the company going broke or having a forced capital raising?
 
we had the USA looking for breaking the China dependence. <from Nov 2019>:
PM Scott Morrison and US President Donald Trump agreed to develop a US-Australia action plan for so-called critical minerals, such as rare earths , when they met in September. And ... federal Resources Minister Matt Canavan is arriving in the US ahead of a series of meetings on rare earths with senior US government figures.
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But for all the talk, unlocking the next wave of Australian projects still looks a long way off. China's control of the market has kept international prices low, and the next generation of potential projects has not been able to secure the level of support needed to develop the projects that would challenge China's dominance. Many in the industry have had enough of the tweets and strategic papers. Instead, they want to see real action from those concerned governments that say they are serious about tackling dependency on Chinese rare earths products.
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https://www.theaustralian.com.au/inquirer/r...bbab3acecd38b7f


and now the EU:
The European Union has issued a plan to cut its dependence on Chinese supplies of rare earths, lithium batteries and solar cell components, as it tries to build a green energy economy that is not largely made in Beijing. Brussels will bring industry, governments and NGOs into a "European Raw Materials Alliance", which will refashion the continent's supply chains for up to 30 critical products, including those used to make wind turbines, fuel cells, solar panels, magnets, drones and batteries for electric vehicles. Lithium appears on the EU critical list for the first time, in a fillip for the clutch of Australian listed companies looking to mine and process it within Europe.
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"We cannot afford to rely entirely on third countries; for some rare earths, even just one country," said the EU Internal Market Commissioner Thierry Breton, as he launched the Action Plan on Critical Raw Materials on Thursday. "By diversifying the supply from third countries and developing the EU's own capacity for extraction, processing, recycling, refining and separation of rare earths, we can become more resilient and sustainable."
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Brussels will look to build sustainable and responsible strategic partnerships with resource rich countries, the Action Plan said, name checking Australia as one of its priorities. The strategy isn't overtly aimed at China ... there are also dependencies on Turkey, the Democratic Republic of the Congo, and South Africa, but the European Commission analysis shows that in most cases the Asian behemoth is the critical risk factor. The Action Plan's risk assessment notes major concerns about China's quasi monopolistic role in rare earths used to produce magnets for wind turbines, and its dominance of lithium battery production.
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https://www.afr.com/world/europe/europe-bri...20200714-p55bqf
 
GGG ... Company's primary focus is the development of the Kvanefjeld rare earth project in south west Greenland.
IXR .... focusing on its flagship Makuutu Rare Earths Project in Uganda .
NTU ... core focus on the construction and operation of a pilot scale project aimed at assessing the technical and economic feasibility of a fullscale commercial operation at its Browns Range heavy rare earth carbonate project (3 year pilot).
PM8 ... With Presidential approval, Angolan Sovereign Wealth Fund backing and a Heads of Agreement with a major Chinese SOE, Pensana is bringing online the first major Rare Earth mine in over a decade at Lonjongo, Angola
VML ... explorer and developer with highly prospective mineral projects, focusing the on world-class rare earth Nechalacho project in Canada.
HAS .... mineral exploration company operates in development of rare earth-enabled products and technologies. HAS is currently focused on Yangibana and Brockman rare earth project.
ASM .... progressing the Dubbo Project to become a key global supplier of specialty metals and rare earths.
 
Dona Ferentes said:
GGG ... Company's primary focus is the development of the Kvanefjeld rare earth project in south west Greenland.
IXR .... focusing on its flagship Makuutu Rare Earths Project in Uganda .
NTU ... core focus on the construction and operation of a pilot scale project aimed at assessing the technical and economic feasibility of a fullscale commercial operation at its Browns Range heavy rare earth carbonate project (3 year pilot).
PM8 ... With Presidential approval, Angolan Sovereign Wealth Fund backing and a Heads of Agreement with a major Chinese SOE, Pensana is bringing online the first major Rare Earth mine in over a decade at Lonjongo, Angola
VML ... explorer and developer with highly prospective mineral projects, focusing the on world-class rare earth Nechalacho project in Canada.
HAS .... mineral exploration company operates in development of rare earth-enabled products and technologies. HAS is currently focused on Yangibana and Brockman rare earth project.
ASM .... progressing the Dubbo Project to become a key global supplier of specialty metals and rare earths.
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Arafura Resources NL (ARU) is a mineral exploration company focusing on rare earths. It's flagship project is the Nolans Rare Earths Project, located in the Northern Territory. (and has been for ... let's see?)
 
GGG ... Company's primary focus is the development of the Kvanefjeld rare earth project in south west Greenland.
IXR .... focusing on its flagship Makuutu Rare Earths Project in Uganda .
NTU ... core focus on the construction and operation of a pilot scale project aimed at assessing the technical and economic feasibility of a fullscale commercial operation at its Browns Range heavy rare earth carbonate project (3 year pilot).
PM8 ... With Presidential approval, Angolan Sovereign Wealth Fund backing and a Heads of Agreement with a major Chinese SOE, Pensana is bringing online the first major Rare Earth mine in over a decade at Lonjongo, Angola
VML ... explorer and developer with highly prospective mineral projects, focusing the on world-class rare earth Nechalacho project in Canada.
HAS .... mineral exploration company operates in development of rare earth-enabled products and technologies. HAS is currently focused on Yangibana and Brockman rare earth project.
ASM .... progressing the Dubbo Project to become a key global supplier of specialty metals and rare earths
ARU .... Arafura Resources NL is a mineral exploration company focusing on rare earths. It's flagship project is the Nolans Rare Earths Project, located in the Northern Territory. (and has been for ... let's see?)

And, a recent popper
ARR .... American Rare Earths Ltd had change in name from Broken Hill Prospecting to reflect new focus on its La Paz Rare Earth tenements in Arizona and its Laramie asset in Wyoming.
PEK .... Peak Resources Ltd now has 100% ownership interest in the Ngualla Rare Earth Project in Tanzania. Low cost NdPr project with BFS, needs Tanzanian Govt clearance box ticked.
 
Dona Ferentes said:
GGG ... Company's primary focus is the development of the Kvanefjeld rare earth project in south west Greenland.
IXR .... focusing on its flagship Makuutu Rare Earths Project in Uganda .
NTU ... core focus on the construction and operation of a pilot scale project aimed at assessing the technical and economic feasibility of a fullscale commercial operation at its Browns Range heavy rare earth carbonate project (3 year pilot).
PM8 ... With Presidential approval, Angolan Sovereign Wealth Fund backing and a Heads of Agreement with a major Chinese SOE, Pensana is bringing online the first major Rare Earth mine in over a decade at Lonjongo, Angola
VML ... explorer and developer with highly prospective mineral projects, focusing the on world-class rare earth Nechalacho project in Canada.
HAS .... mineral exploration company operates in development of rare earth-enabled products and technologies. HAS is currently focused on Yangibana and Brockman rare earth project.
ASM .... progressing the Dubbo Project to become a key global supplier of specialty metals and rare earths
ARU .... Arafura Resources NL is a mineral exploration company focusing on rare earths. It's flagship project is the Nolans Rare Earths Project, located in the Northern Territory. (and has been for ... let's see?)

And, a recent popper
ARR .... American Rare Earths Ltd had change in name from Broken Hill Prospecting to reflect new focus on its La Paz Rare Earth tenements in Arizona and its Laramie asset in Wyoming.
PEK .... Peak Resources Ltd now has 100% ownership interest in the Ngualla Rare Earth Project in Tanzania. Low cost NdPr project with BFS, needs Tanzanian Govt clearance box ticked.
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I’ve been following GGG

gg
 
Garpal Gumnut said:
I’ve been following GGG

gg
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GG follows GGG
Me too, got a little bag of them.
They have been getting a lot closer, I would think, to grant of a 'mining lease' in recent times, after many years. Probably still some way to go. Its a biggie. Mine life currently estimated at 37 years. A Big resource not in China. I would not be surprised that a race will be on at some point when a grant to develop is made.
Currently the EIA has been accepted and soon be out for public comment. More in the GGG thread.
 
China using its rare earth monopoly again cutting off Chinese supply to US companies providing arms to Taiwan

smallcaps.com.au

China sends warning it can cripple US defence system by turning off rare earths tap

China is reported to be cutting off rare earth supplies to the United States defence manufacturer Lockheed Martin and other American companies in retaliation for the companies supplying Taiwan with military hardware.
smallcaps.com.au smallcaps.com.au
 
jbocker said:
GG follows GGG
Me too, got a little bag of them.
They have been getting a lot closer, I would think, to grant of a 'mining lease' in recent times, after many years. Probably still some way to go. Its a biggie. Mine life currently estimated at 37 years. A Big resource not in China. I would not be surprised that a race will be on at some point when a grant to develop is made.
Currently the EIA has been accepted and soon be out for public comment. More in the GGG thread.
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Unfortunately for GGG the delays have seen Punters let it drop substantially since late January. Most other R/E Stocks are still ticking higher.

Government of Greenland, in consultation with the Company, has elected to extend the period for the public consultation hearings for the Kvanefjeld Rare Earth Project until June 1. This will result in a 23‐week consultation period instead of the originally determined 12 weeks.


My small watchlist for reference:

1613359085820.png
Both NTU and IXR in Trading Halt but both look like opening higher on reinstatement. NTU tomorrow. IXR on Wednesday.
 
China holds the most resources in this commodity, and I can understand that other nations want to have supplies available from elsewhere.
So say some do get developed elsewhere, then couldn't China flood the market and possibly make the operations from other countries unprofitable.
Can we trust the buyers to not run to the cheapest supplier.
 
jbocker said:
China holds the most resources in this commodity, and I can understand that other nations want to have supplies available from elsewhere.
So say some do get developed elsewhere, then couldn't China flood the market and possibly make the operations from other countries unprofitable.
Can we trust the buyers to not run to the cheapest supplier.
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Interesting that your suggestion from last month has been in conversation around the "traps" over the last few days @jbocker

I think that suggestion was one of the reasons why Rare Earth Stocks were pushed around this week.

I'm not sure whether China would try and flood the market though. They seem to prefer to throw their weight around with threats of stifling supply instead

Personally I think once a few RE separation plants are up and running outside of China, the better off the whole industry will be

Lynas is working with the US to build a new plant and the Canada Gov is doing similar down the road from VML's mining operations

Lynas is the big player for the West. Without them, China could take total control. Apparently the Chinese tried to maneuver a large stake in Lynas, but it was blocked by our Gov I believe. Thank goodness somebody was on the ball:cautious:

I am still hoping VML will be the new kid on the block in a few years with the help of Norwegian ReeTEC who have a revolutionary way of separating Rare Earths with less pollution and less waste.

Anyway, babbling aside, Lynas had a reprieve from this week's selling today up +3% Some others also stopped bleeding including VML which I hold. They were all getting a bit ahead of themselves so the retrace might prove healthy in the medium term.

My small watch list of RE Stocks today. Nice to see a little green:greedy:


1619159629999.png
 
bowman said:
It seems to be all go in the rare earths space since the recent publicity of China's global near-monopoly of these minerals.
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Eleven years later and this statement is still on the money. Rare Earth explorers and miners in Australia (and no doubt in other friendly jurisdictions) are experiencing a bull run as companies look for suppliers outside China.

www.abc.net.au

Fears of China 'monopoly' spark rush for supplies of critical minerals from Australia

A race between the world's superpowers puts Australia firmly in focus as an alternative to China for minerals crucial to the development of essential technologies.
www.abc.net.au www.abc.net.au

I think we're going to see bullishness in this sector for some time as demand increases and as technology companies try to secure suppliers in Western nations.
 
greggles said:
Eleven years later and this statement is still on the money. Rare Earth explorers and miners in Australia (and no doubt in other friendly jurisdictions) are experiencing a bull run as companies look for suppliers outside China.

www.abc.net.au

Fears of China 'monopoly' spark rush for supplies of critical minerals from Australia

A race between the world's superpowers puts Australia firmly in focus as an alternative to China for minerals crucial to the development of essential technologies.
www.abc.net.au www.abc.net.au

I think we're going to see bullishness in this sector for some time as demand increases and as technology companies try to secure suppliers in Western nations.
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I might have a bit of harmless punting in this sector after 3pm.

gg
 
Garpal Gumnut said:
Which reminds me what is GGG up to?

gg
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The SP has slowly crept off the lows since last April. Next round of "talks" to convince the Gov. to change their minds in late August according to the news. The eventual outcome of the meetings could cause a share price cascade in either direction depending on the results. I'd say plenty more water under the bridge till anything final but that's just a guess.

The next public meetings are planned to be held in weeks 34 and 35 (late August), and will be held in Igaliku, Nanortalik, Narsaq, Narsarsuaq, Qaqortoq and Qassiarsuk in southern Greenland. These meetings will have political representation.
 
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