The Good Times are Back in the Rare Earths Space
Rare earths are booming again as a clampdown on wildcat miners in China crimps supply in the world’s biggest producer while the clean energy boom bolsters their use in everything from electric vehicles to wind turbines. Prices for “light” rare earths including neodymium and praseodymium have exploded in recent months as traders and consumers snap up material that’s becoming scarcer.
Arguably the most important REE conference for the year, Metal Events‘ International Rare Earths Conference, took place again in Hong Kong on November 8-10 and was well attended by industry. The main takeaway was the optimism for a continued and sustained bull market for REEs in the foreseeable future. As the keynote speaker, Chairman of Neo Performance Materials, Constantine Karayannopoulos, said: “The good times are back – after 5 years of misery – and I expect that next year we will see many more bankers and investors here.“ In regards of Constantine’s stated optimism, you may have seen that he has launched the $300 million IPO for his new REE company, and I would argue that the underwriters (Bank of Nova Scotia, Royal Bank of Canada and Cormark Securities) would not attempt this without a decisive opinion that they would be successful in this endeavour and that they only could be successful with the prevailing REE market winds behind their backs, with current upward demand and price pressure for the REEs. Similar to today‘s news, I expect more ground-breaking news from Commerce Resources Corp. putting its Ashram REE Project in Québec on the map globally.
Commerce Resources is engaged in the business of acquiring, exploring, developing and evaluating mineral resource properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. Co. is in the exploration stage and has interests in properties located in British Columbia and Quebec, Canada. The recoverability of amounts shown for resource properties is dependent upon the discovery of economically recoverable reserves, continuation of Co.'s interest in the underlying mineral claims, the ability of Co. to obtain financing to complete their development, and future profitable production or disposition thereof.
Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development and production of resource deposits as well as marcoeconomic analysis of commodity and currency markets. Our international team of five analysts bring our German and English speaking readership a wealth of experience from the commodity markets: Stephan Bogner (mining analyst), John P. Barry (professional geologist), Chris Berry (macroeconomist), Prof. Dr. Hans Bocker (award-winning book author), and Boris Gerjovic (fundamental analyst).
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