First, Molycorp (MCP) look poised for a rally. Soon after that, the technicals turned, indicating pressure was building for a big move. I hedged, but I remained bullish.
Rare Earth Mining News
Molycorp, Inc. (NYSE: MCP), the Western hemisphere's only producer of rare earth oxides, today announced that, subject to market conditions, it intends to offer $200 million principal amount of its Convertible Senior Notes due 2016 (the “Notes”) in an offering exempt from the registration requirements of the Securities Act of 1933. The Notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. In addition, Molycorp intends to grant the initial purchasers of the Notes an option to purchase an additional $30 million principal amount of the Notes.
But just what are critical metals? They are sometimes referred to as "strategic" or "technology" metals, but clear definitions for these terms often prove elusive and routinely depend on to whom you're talking.
China is giving its biggest, state-owned rare earths miner and producer a monopoly for the northern part of the country in reforms aimed at bringing the strategically important resource that's crucial to advanced manufacturing under tighter control.
The Winnipeg office of Union Securities Ltd. is hosting a special presentation on technology metals by the man who coined the term "Rare Earth Metals" four years ago. Jack Lifton, a 48-year veteran of the mining industry, Founding Principal of Technology Metals Research LLC, and a leading adviser to the high tech industry and the global institutional-investment community, will be speaking at the Winnipeg Free Press News Café, 237 McDermot Avenue on Saturday, June 11 at 9 a.m.
Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(OTCQX:QREDF)(FRANKFURT:BR3) ("Quantum", the "Company") is pleased to announce the addition of David C. Beling, P.E. to the Board of Directors, and the additions of James E. Reynolds, Chemical Engineer, and David R. Shoemaker, Mining Engineer to the Technical Advisory Board.
Ucore Rare Metals acquired significant additional rare earth-prospective land holdings in Alaska. D uring May, 2011, the Company completed staking of a substantial claim block in the northern Ray Mountains region of central Alaska, on lands selected for mineral potential by the State of Alaska.
Baotou Steel Rare Earth (Group) Hi Tech Co, the world's largest rare earth producer, will consolidate 35 local miners this month and further unify the distribution and processing of the 17 elements. The Inner Mongolia autonomous region, the site of 97% of China's reserves, has drafted a plan to concentrate all resources under Baotou. The move follows the announcement last week that the state-owned firm will set up the country's first rare earth products exchange to further regulate the market. China accounts for upwards of 95% of global supply. To combat China's domination of the market the US recently declared rare earth to be a strategic resource for the country.
Nearly a year has passed since Molycorp hit the stock markets with its IPO. And considering this stock’s popularity today, it’s astounding that this IPO had flown under the radar for most investors. Last July MCP shares debuted below the pre-IPO targeted price range, and traded on the low side of that range for weeks before it finally caught a bid. MCP didn’t quite have the fanfare as say LinkedIn or other IPOs over the last year.
Commodity Online online reports on Thursday rare earth monopoly China’s Jiangxi Province saw its output surged 30.15% year on year to 5,694 metric tons in the first four months of the year, boosted by rising prices. In the first three months of this year, the rare earth industry in Jiangxi realized RMB4.95bn ($770m) in operating revenue, up 83% from the first quarter 2010, due to increases in both output and prices. The industry saw its gross profit surged 166% year on year to RMB934m ($144m) during the period.
MCP reported earnings May 11 in the middle of this slide. After 10 days of consolidation below the 50-day moving average (DMA), MCP is finally making a breakout move. Buying volume is dominating selling volume as MCP has finally punched above the 50DMA.
Seymour Ventures announces launch of 2011 exploration program on the Mount Bisson and Xeno rare earth properties
Seymour Ventures' wholly owned subsidiary Rare Earth Industries Ltd. (REI) is pleased to announce that it has commenced the exploration work program on the Mt. Bisson and Xeno rare earth properties, located in the Omineca Mining Division, approximately 50 kilometers NW of Mackenzie in central BC. REI has the right to earn a 60% interest in the properties from Paget Minerals by spending $1,050,000 over three years to develop the property, including $350,000 in 2011. The initial discovery of rare earth element mineralization on the Mount Bisson property was made by Halleran in 1986 with total rare earth element (TREE) contents as high as 13.5 wt.% in grab samples from the Laura occurrence.
Let me begin by saying that I believe the premise of this question is mistaken. It is quite incorrect to think that fossil fuel resources are finite. It may be true that there is a finite quantity of such resources in the earth's crust, but that does not mean that we will ever run out.
Shares in Africa-focused Globe Metals and Mining shot up on Monday after it released positive rare earth exploration results. Chinese state-owned firm East China Minerals Exploration and Development Bureau last month became the largest shareholder in Globe when it bought a 53.7 per cent stake.
This is what happens when you corner a market the way China has done with rare earth elements: Statistics collected in Hong Kong show exports of rare earth metals have shrunk by half over the past year. Over the same period, the value of these exports jumped 10-fold. It’s hard to argue with these kinds of numbers. After the stocks prices of the few big players pulled back from recent highs investors saw it not as evidence of sobriety returning to the market, but simply as a buying opportunity.
China's biggest rare earth producer, Baotou Steel Rare Earth (Group) Hi Tech , has won local government approval to start an exchange to trade the increasingly lucrative metals used in many high-tech goods, state media reported on Friday. The regional government of Inner Mongolia, where the Shanghai-listed company's mining and processing operations are based, gave the "green light to the establishment of a rare earth exchange in the city of Baotou," the Xinhua news agency reported, citing city officials and an earlier statement from the Baotou Steel Rare Earth (Group) Hi Tech.
Canadian financial commentator Michael Campbell does a Q&A with Dr. Michael Berry of Discovery Investing. In the column, Campbell and Berry discuss the U.S. debt crisis and the Greek situation, before focusing on strategic metals as an area of interest for investors. Berry points to a critical metals bill, introduced this week into the U.S. Senate, as an important signal for investors. The bill devotes $106 million to the development of cobalt, helium, lead, lithium, phosphate, potash, and rare earths.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces." The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
Endurance Gold Corporation (EDG - TSX.V, "Endurance") is pleased to announce that further compilation of historic data on the Bandito REE-Ni Project has resulted in the identification of new targets and expanded the size of the altered rare earth enriched nepheline syenite and altered host rock to approximately nine square kilometers in size. Within this large alteration system, eleven target areas have been defined that have potential for significant enrichment in rare earth minerals.
Shifting technology, energy and defense needs along with volatile global economic and political pressures are changing the supply-and-demand equation for rare earth and strategic metals, opening opportunities that didn't exist a few years ago. The Cambridge House Critical Materials Investment Symposium June 3 and 4 will bring together industry experts, representatives of financial institutions, investors, end-users/manufacturers and the media to talk about solutions going forward.
Australian rare earths company Arafura Resources has successfully completed the hydrochloric acid regeneration program, a key part of its wider, previously reported technology program. The process involves taking calcium chloride residues from the phosphate circuit and re-acting them with sulphuric acid to produce re-useable hydrochloric acid, a key raw material in Arafura’s pre-leach circuit, and calcium sulphate (gypsum), a potential saleable product into various end applications.
China's rare earths exports in April were 53% down on a year earlier and 12.6% from the March figure, yet export value per tonne rose ten-fold, customs data showed on Monday. China, which controls about 97% of rare earth output, has angered customers in Japan, the United States and Europe by clamping down on production and sale of the 17 rare earth elements, citing a need to clean up highly polluting production processes and to stop illegal exports.
The prices of rare earth oxides are blasting through the stratosphere. Manufacturers are driving prices in their haste to involve the materials in production of hybrid vehicles, wind turbines, and the most high tech applications of which many sophisticated investors are unaware. These producers need the rare earth ore and are willing to pay for it on the world markets.
Latin America used to be known for its economic and political instability. But it fought off the global financial crisis with relative ease. Poverty is now falling, the middle classes are growing rapidly and asset […]
In separate transactions announced in April 2011, Molycorp reported it had acquired a 90.023% controlling stake in AS Silmet, an Estonia-based rare metal and rare earth metal producer, and a 100% interest in Santoku America, Inc., a leading producer of high-purity rare earth alloys and metals based in Arizona. The Silmet transaction was valued at about $89 million; the Santoku America transaction was valued at $17.5 million. Silmet has changed its name to AS Molycorp Silmet. Santoku America has been renamed Molycorp Metals and Alloys, Inc. Read more