Australian (ASX) Stock Market Forum

Rare Earths

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Dona Ferentes said:
another that is being rounded up .... ASM approaching $10. ........ up 11% this morning
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Its a good looking business indeed DF.

$ 1.2 Billion M/Cap

$93M in cash after recent placement at $4.80 (Punters who participated would be happy at the moment)


I think that VML has a chance of emulating that M/cap at some time in the future which would give them a SP of +25 cents :wideyed:

As long as they don't branch out into ergonomic chairs and jousting sticks, lol. :cat:

Dreamin'
 
barney said:
As long as they don't branch out into ergonomic chairs and jousting sticks, lol. :cat:

Dreamin'
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Regrets, I've had a few: Having watched ASM when it was spun out (was sub a buck for a few occasions in the early days before the SP went whooshka) and having watched VML for too long (I think when it was sub 3c, I said "I don't chase") the RE sector has long been a bleedin' obvious place to get into, if the decarb narrative is to be believed. <Actually , you don't even have to believe it as long as sufficient others do!!> So I liked the look of AR3 as it
- was low MC
- shallow, easy to explore, develop
- heavy RE focus with likely low radioactive element constituents
- ANSTO links
Negatives include more capital needed down the track, and also it's farmland, so there'll be pushback

And I see IXR is another up 10% today. Similar ionic clay story, probably a better deposit but in Uganda. Whereas, the latter day arrival FNT with leases around the AR3 edges is much more a pig in a poke.
 
barney said:
Its a good looking business indeed DF.

$ 1.2 Billion M/Cap

$93M in cash after recent placement at $4.80 (Punters who participated would be happy at the moment)

I think that VML has a chance of emulating that M/cap at some time in the future which would give them a SP of +25 cents :wideyed:

As long as they don't branch out into ergonomic chairs and jousting sticks, lol. :cat:

Dreamin'
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If vml management keep delivering like they are currently, there is going to be a very bright future ahead and 25c + might not be out of the question in the years ahead.
 
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Alerted to Marray Basin’s rare earths potential by a PhD student’s research project in 2016, Australian Rare Earths (AR3) has quickly established a sizeable maiden resource from drilling at the Red Tail and Yellow Tail deposits at Koppamurra.

The mineral resource estimate – 39.9Mt at an average grade of 725ppm total rare earth oxides – comes from shallow clay zones that sit on top of a limestone base, making for a similar geological setting to ionic-clay hosted zones that sit on top of a granite base in southern China.

Although low-grade compared with Lynas’ (ASX:LYC) hard-rock Mount Weld rare earths wonder in WA, the ionic clay deposits (so-called because the rare earths are easily liberated from the clay using a weak acid process), are much cheaper to mine and process than hard-rock deposits.

That’s why the market has got excited about AR3, knowing that the Red Tail and Yellow Tail deposits are likely to be the start of a bigger story as the geological setting for Koppamurra extends eastwards cross the Kanawinka Fault to the SA border, and across into Victoria.

It is in Victoria where excitement over the Koppamurra discovery is already rubbing off, with the Toronto-listed Lions Bay Capital (TSX-V:LBI) this week striking a farm-in deal with the privately held Savic over the likely extension of the rare earths clays into Savic’s Victorian tenements. The Savic tenements adjoin the Koppamurra tenement to the west and across the border in SA, and AR3’s ground to the north in Victoria.

Lions Bay might be listed in Canada but it really Melbourne through and through as it is led by John Byrne, the former financial journalist who has decades of experience in the mining investment space. That is reflected in Lions Bay also holding strategic stakes in the following ASX listed companies: Elementos ((ELT), Parkway (PWN), Kalina Power (KPO) and South Hartz Potash (SHP).

The deal with Savic – led by former stockbroker and oil and gas executive Rob Annells – prompted a 30% share price jump for Lions Bay to C11c a share, valuing the company at about $C15m, most of which is covered by the value of its investment portfolio.

Given the excitement around the rare earths in clay on the SA/Victoria border story, Lions Capital is headed to the ASX.

“It should be relatively straight forward given the strength of the company’s balance sheet and the fact that the majority of its assets are liquid investments in ASX listed public companies,’’ Byrne told the Canadian market.

Under its deal with Savic, Lions Bay has the right, on the exercise of a four-month evaluation option, to earn a 50% interest in the Savic areas (it originally took up the ground ahead of the AR3 discovery for the mineral sands potential) by spending $5m over three years.

stockhead.com.au

Barry FitzGerald: The rare earths State of Origin is on in the Murray Basin - here's the starting lineups - Stockhead

The Murray Basin which straddles the South Australia-Victoria border is laying down a challenge to China’s global dominance in rare earths.
stockhead.com.au stockhead.com.au
 
peter2 said:
What! No comments on Friday's spike in many rare earth companies. AR3, ARU, KTA, HAS, NTU.
Holding ARU, to the moon baby. Edit: Will the other RE stocks play catch up next week. VML?
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ARU is having yet another big day out today ? (a picture of Peter 2 a few moments ago)

Most RE's up and going

Some speculation the shares coming out of escrow for VML will keep punters cautious in the short term, hence it is lagging the current push.

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peter2 said:
Thanks @barney but your VML is a bit of a slug.
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Tortoise/Slug and the Hare @peter2 ;)

I mentioned in the VML thread. Half a billion escrow shares are possibly keeping punters cautious (makes perfect sense)

I doubt Management will be letting too many go just yet. Far too much potential for growth yet.
 
Could probably add HYM Hyperion Metals to the rare earths list. Gone from 3c to over a buck in the past 2 years. Been following for some time trying to understand the field. Not sure if I really get it so been waiting for some price action to tell me where it was going. I thought the break up around mid Aug was going to be an entry point but have just sat back and watched. Seems to have found some support.

Screen Shot 2021-09-27 at 3.31.30 pm.png
 
kennas said:
Is anyone working on a spreadsheet with all these rare earths on them and the % that each company has discovered?
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Never done a spreadsheet on the Resources - good idea though. Time frame to production and production costs etc etc will obviously have a large bearing on perceived value short/longer term for traders.

My simple view is to just look at the market caps - share price ratio, then see how much cash each has in the kitty.

A lot of the RE's have done well and raised some decent amounts of cash lately.

VML is the only one I hold, mainly because it looks to have the shortest and cheapest route to Production given their deal with ReeTEC

But their are plenty that have a great cash - market cap ratio


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Critical Minerals Facility established by govt.

$2bill in loans over 10 years.

https://www.minister.industry.gov.au/minist...minerals-sector

Australia has among the world's largest recoverable reserves of the critical minerals used in advanced technologies, such as renewable energy, aerospace, defence, automotive and electric vehicles in particular, telecommunications and agritech.

Prime Minister Scott Morrison said the fund would effectively help fill finance gaps in critical minerals resources developments to get them off the ground.

"The commercial dimensions of the critical minerals market mean it is a difficult place to get established. We want to ensure that Australia's resources producers do get established to they can link up with others in our supply chains in a free and open Indo-Pacific", the Prime Minister said.
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Good suggestion RE: spreadsheet but I don't think that will give you the entire picture.

Rare earths need to be processed before they're valuable so although a company may have a great mining plan with an enormous deposit, it doesn't necessarily mean they'll be profitable (having said that China is trying to secure mines overseas, so feedstock alone may be valuable) . Not sure how you'd capture this with metrics.
 
China increases quotas

www.reuters.com

China hikes 2021 rare earth quotas by 20% to record highs

China hiked its annual rare earth output quotas on Thursday by 20% year-on-year to their highest levels on record, as it seeks to ease tight supply for manufacturers.
www.reuters.com www.reuters.com

....a response to demand or an attempt to control supply?
 
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