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Actually, you need 4 recent posts to be appointed a moderator.
This is the reason for all the posts in a row.
I have requested the Canadian QRM.V symbol for this board which trades at different prices from QRM. Tempest in a teapot, I suppose.
It is all the same company, but there are different trading prices and different closing prices.
Mike 6, over & out!
Yep, probably need to delete this and stick with the other one. Looks like you talked it over with yourself, go girl!
going to other board.
Dee
QRM.V is Symbol for this board,
or it needs to be deleted from IHUB as we already have QRM (AMEX) for IHUB. Price is different on the Canadian exchange, but the company is the SAME.
Looks like I need to be moderator.
to request symbol/name change for the Canadian listing of this company. Do not know if IHUB wants one board for aMEX and another for Canada exchange. Will find out!
DeeDog: before the AMEX listing,
this board was opened under QUEST symbol/name in the event the AMEX symbol was to be QUEST. But it was issued as QRM, so we all just went with the old board that changed name from QSURF to QRM.
$4.00 is VERY close,
and should not take the work that $3.00 required.
$QRM - I hope it's going to $4 trader, I just bought more at just over $3, thinking it had bottomed there temporarily. I'm not good with chart TA but that could be some kind of double bottom or even a reverse head and shoulders. Maybe the rally will continue after an adjustment pause (now at 2.95). I need some rally relief, it's still way under my avg pps. :(
Was this new board set up for Canada or US?
I'm a little fuzzy on this board separation.
Hey Crusader, did you set this up? IBOX and all?
Dee
Checkout this article and tell me what you think$$$
by Justin Dove, Investment U Research
Wednesday, November 9, 2011
The Financial Times reported last Friday that two congressional sources claim “the creation of a U.S. rare earth strategic reserve is more likely to get the go-ahead after China’s largest exporter halted production.”
Last month we covered China’s decision to halt production and further control the market for rare metals as prices were slipping due to increased supplies worldwide.
The biggest benefactors will be California’s Molycorp (NYSE: MCP) and Australia’s Lynas Corp. (OTC: LYSCF.PK). But smaller rare earth miners, such as Avalon Rare Metals (AMEX: AVL), Quest Rare Minerals (AMEX: QRM) and Rare Element Resources (AMEX: REE), may also see increased demand from the supply scare.
Over the long haul, supply for rare earths should increase and prices should fall. But with the halted production in China, which currently produces 97 percent of the world’s supply, and a strategic stock pile by the United States, there should be a spike in demand over the short term – especially in the non-Chinese producers listed above.
Molycorp expects to increase its production to an annual capacity of 40,000 metric tons by the end of 2013.
The creation of a U.S. stockpile would allow Molycorp to run “flat out production” from its expanded operations, an analyst told the Financial Times.
Molycorp Earnings Call
Investors should pay close attention to Molycorp’s earnings call on November 10. It’s an incredible short squeeze candidate with 26 percent of its float in short interest. With news that it may face increased demand in the short term, a bullish earnings report could result in a bit of a pop. If that happens many of the shorts could be forced to buy the stock, which would send it even higher.
Stair stepping higher....the chart's looking pretty Bullish.....Buy the pullbacks & sell the peaks.....accumulating more shares as QRM heads higher.....looks like a retest of 4 resistance is coming.....break that and 5 will be on the menu$$$
100% gain in a month...from 2-4.....not bad....more room to run?....according to a recent article there is$$$
For my own convenience:
http://investorshub.advfn.com/boards/board.aspx?board_id=17253
Leaving this Canadian board for QUEST,
so one of our friends to the North can apply to moderate it.
QSURF board has been given the QRM symbol by IHUB (US Listed on AMEX)
Cheers!
FINALLY- AMEX APPROVAL OF QRM'S 40-F,
PRESS RELEASE IS OUT SOON!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
QSURF is down 3%+ more than QRM,
the conversion rate can't be over 3% loss, can it? LOL
mentioned here:
http://ibankcoin.com/jakegint/2011/04/28/dollar-death-dance/
Canadian bank's target: C $10.80
and thanks to Jediknight for making this report public.
One needs to use the page/book/scroll features on the link:
http://www.scribd.com/doc/54048268/QRM-Report-April2011
HERE WE GO!
Price is climbing a wall of worry today.
Something big is up!
All great points. If you want to send me some contact info I can respond.
Got the PR as expected:
News: Quest Board Approves Funding for Pre-Feasibility Study, Strange Lake B-Zone Deposit, Quebec
The initial scope of the B-Zone pre-feasibility study has been established in light of the results that were generated in 2010. The current scope contemplates the excavation of REE-bearing material by means of an open pit mine using conventional truck-and-shovel mining equipment that will provide feed at a nominal throughput rate of 4,000 tonnes per day to a plant that is located in the vicinity of the deposit. The preliminary metallurgical test work that has been completed to date has suggested that the REE-bearing pegmatites and granites are amenable to direct acid attack of the crushed and ground feed from the open pit mine without the need for any pre-concentration steps (see Press Release : August 12, 2010). The use of magnetic separators whose goal will be to remove a portion of the non-REE bearing minerals will be investigated as a potential enhancement to the acid attack flowsheet. Following acid attack, the solution is then envisioned to be sent to a solvent extraction circuit where final products will be generated. The material remaining from the process is envisioned to be stored in a land-based storage facility that is located in proximity to the deposit. Trade-off studies will be undertaken which examine the relative merits of transporting supplies, consumables and final products either by a road link to a port facility located on the Labrador coast or to an existing rail head located in the Schefferville, Quebec area.
"We are very pleased with the quality and level of technical talent that we have been able to assemble for the completion of the Strange Lake project pre-feasibility study," said Peter J. Cashin, Quest's President & CEO. "A deposit of such importance, as is the case of our B-Zone REE deposit, requires the best possible technical evaluation and outcome. I have the utmost confidence that our team will deliver the desired result."
"The depth of the talent and experience that has been assembled for the completion of our pre-feasibility study represents an important milestone towards the advancement of the B-Zone deposit. We look forward to the contributions and input of every team member while we work together with our partners on this study," said Reno Pressacco, Quest's Vice-President, Operations.
Winter 2011 Exploration Program Update
A 21-hole, 3,318.0m program of diamond drilling that began in mid-March 2011 to test the northern continuity of the B-Zone "Pegmatite Spine" was recently completed. The program successfully traced out the northern strike extension of the Rare Earth Element (REE)-mineralized host granites and pegmatites beneath Lac Brisson. All samples have been submitted to Activation Laboratories in Ancaster, Ontario for analysis and results are pending. Assays from this program will be released as the information becomes available and has passed Quest's internal review protocols.
On a parallel path, field work has begun on the gathering of geotechnical data in support of open pit mine design and work has also begun on the continuation of the successful metallurgical testing program that was carried out last year. A metallurgical sampling drillhole for 152.0m was completed during winter drilling and will supplement an 18-tonne bulk sample that was collected from the surface exposure of the B-Zone last summer. Quest has selected Hazen Research of Golden, Colorado, to complete Phase 2 Metallurgical studies on B-Zone mineralization. The remaining material from the bulk sample will be used for future Pilot Mill studies for the Zone. The results from these activities will feed into the remainder of the prefeasibility study which is expected to be completed by year end.
In further news, Quest announces that it recently completed a small, four-hole, 310.3m drilling program on its Alterra Strange Lake, Labrador option property with Search Minerals Inc. (TSX VENTURE: SMY). The program tested surface REE mineralized occurrences identified by Quest during its summer 2010 exploration activities. Mineralized pegmatite and granite aplite was intersected in all holes on the property. All holes were sampled and submitted to the lab for analysis. Assay results are pending.
About Quest Rare Minerals
Quest Rare Minerals Ltd. is a Canadian-based exploration company focused on the identification and discovery of new and significant Rare Earth deposit opportunities. The Corporation is publicly listed on the TSX Venture Exchange as "QRM" and is led by a highly respected management and technical team with a proven mine finding track record. Quest is currently advancing several high potential projects in Canada's premier exploration areas: the Strange Lake and Misery Lake areas of northeastern Quebec and the Plaster Rock area of northwestern New Brunswick. Quest's 2009 exploration led to the discovery of a significant new Rare Earth metal deposit, the B-Zone, on its Strange Lake property in northeastern Quebec. The Corporation recently filed a 43-101 Inferred Resource Estimate on the B-Zone deposit and has completed a Preliminary Economic Assessment (PEA) for the deposit. In addition, Quest announced the discovery of an important new area of REE mineralization on its Misery Lake project, approximately 120 km south of Strange Lake project. Quest continues to pursue high-value project opportunities throughout North America. As a result of a recently-completed marketed equity financing, Quest has a strong working capital position in excess of $51.0 million. This will be sufficient to advance the Corporations plans of completing a pre-feasibility study of the B-Zone REE deposit by 2011-2012 and to continue exploration on its other rare earth property interests.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
http://www.streetinsider.com/Press+Releases/Quest+Board+Approves+Funding+for+Pre-Feasibility+Study,+Strange+Lake+B-Zone+Deposit,+Quebec/6442319.html
Poor Ms. Market wanted news;
disappointed, she stair stepped down into the red.
Well the market was mistaken for a change. I hear that the Annual Meeting went well and was well attended. Third party accounts will be published, starting tomorrow.
Ms. Market will have to retrace her steps- again.
AMEX Listing Timeline:
I do not know what Avalon Rare Metals did to get expedited approval for AMEX trading, but look at the attached link to Edgar Search on Avalon.
http://www.sec.gov/cgi-bin/browse-edgar?company=avalon+rare&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany
The SEC form 40-F was signed on Dec. 9th, 2010, filed with the SEC on the 12th and there is a SEC filing of notice of approval by the NYSE for AMEX trading is dated the 21st of December 2010.
Is that a world's record?
In my opinion, QRM/QSURF will have an announcement any day now. It has been about 6 weeks since the QRM form 40-F was filed.
Maybe the company is dragging its heels for some reason.
BE ON ALERT FOR NEWS ANY DAY NOW, IMHO.
Any bets what the AMEX trading symbol will be? QRM would be the most logical unless there is a practical reason to not duplicate the Canadian venture exchange symbol on a second exchange.
Research article for investors:
http://www.questrareminerals.com/pdfs/QRM%20Initiating%20coverage.pdf
AMEX uplisting in USA due in April,
and this will change the trading dynamics of ORM in Canada.
QRM may become the AMEX trading symbol.
1st Post: Quest's Revised Resource Estimate
for the B-Zone REE Deposit Shows Important Improvements in Tonnage and Grade at Strange Lake, Quebec
http://finance.yahoo.com/news/Quests-Revised-Resource-ccn-215521454.html?x=0&.v=1
Press Release Source: Quest Rare Minerals Ltd. On Monday April 11, 2011, 7:01 pm EDT
TORONTO, ONTARIO--(Marketwire - April 11, 2011) - Quest Rare Minerals Ltd. (TSX VENTURE:QRM - News) -
Highlights: - A NI43-101 compliant Resource Estimate for the B-Zone deposit was determined using cut-off grades of 0.7%, 0.8%, 0.85%, 0.9%, 0.95%, 1.0%, 1.1% and 1.2% Total Rare Earth Oxides (TREO) and an average specific gravity of 2.72 g/cm(3) - An economic cut-off grade determined from Whittle pit shell optimization methods of 0.579% TREO was calculated for the B-Zone deposit - A cut-off grade of 0.95% TREO was selected to represent that portion of the total B-Zone deposit resource that would be used in the anticipated Pre-Feasibility Study for a 25-year Open-Pit production model established by an earlier Preliminary Economic Assessment report (September 2010) - At a base-case cut-off grade of 0.95% TREO, the B-Zone contains an Indicated Resource of 36.4 million tonnes grading 1.16% TREO, 2.17% zirconium oxide, 0.24% niobium pentoxide, 0.05% hafnium oxide and 0.12% beryllium oxide and a further Inferred Resource of 14.4 million tonnes grading 1.11% TREO, 2.02% zirconium oxide, 0.21% niobium pentoxide, 0.05% hafnium oxide and 0.09% beryllium oxide
Quest Rare Minerals Ltd. (TSX VENTURE:QRM - News; the "Company") is pleased to announce a revised National Instrument 43-101 compliant Indicated and Inferred category resource estimate for its B-Zone rare earth deposit within the Strange Lake Project, Quebec. The estimate was prepared by Wardrop, a Tetra-Tech Company ("Wardrop"). The Strange Lake Project is located 225 km northeast of Schefferville, Quebec and 125 km west of the giant Voisey's Bay nickel-copper-cobalt deposit, eastern Labrador. Quest also reports that exploration drilling on winter ice commenced in mid-March to probe the northern extension of the deposit over Lac Brisson, Quebec.
The base-case resource was estimated using a TREO cut-off grade of 0.95% TREO (Tables 1a, 2a) and represents sufficient Indicated Resource to satisfy a minimum 25-year open-pit production model for the B-Zone established for the Company's Preliminary Economic Assessment (PEA, see Press Release : September 9, 2010) study. At this cut-off, the B-Zone hosts an Indicated Resource of 36.4 million tonnes grading 1.16% TREO, 2.17% zirconium oxide (ZrO2), 0.24% niobium pentoxide (Nb2O5), 0.05% hafnium oxide (HfO2) and 0.12% beryllium oxide (BeO). A further Inferred Resource (Tables 1b, 2b) of 14.4 million tonnes grading 1.11% TREO, 2.02% ZrO2, 0.21% Nb2O5, 0.05% HfO2 and 0.09% BeO is calculated. It is estimated that Heavy Rare Earth Oxides (HREO) represent between 40% and 51% of the TREO in the deposit. Contained within the Indicated Resource is an outcropping and higher grade "Pegmatite Spine" (see Figure 1) containing 8.1 million tonnes at 1.66% TREO, 2.77% ZrO2, 0.37% Nb2O5, 0.06% HfO2 and 0.19% BeO. A further Inferred "Pegmatite Spine" resource of 2.57 million tonnes grading 1.53% TREO, 2.57% ZrO2, 0.30% Nb2O5, 0.06% HfO2 and 0.15% BeO is calculated.
Mineralisation within the deposit is currently open along strike, to the north and south, and down-dip to the northwest. In addition, a program of Phase 2 metallurgical testing studies for the deposit is currently being undertaken by Hazen Research, Inc. of Golden, Colorado. It is intended that the data from these studies will form the basis for a future Preliminary Feasibility Study (PFS) of the deposit.
Table 1a - Indicated Category Resources, B-Zone Deposit, Strange Lake Project, Quebec ----------------------------------------------------------------------------TREO Density Tonnage ZrO2 Nb2O5 HfO2 BeO TREO HREO LREO HREO/% % % % % % % % TREO----------------------------------------------------------------------------Cut-off t per t x Ratio m3 1000 ----------------------------------------------------------------------------1.20% 2.72 8,095 2.77 0.37 0.06 0.19 1.655 0.849 0.806 51----------------------------------------------------------------------------1.10% 2.72 12,044 2.59 0.33 0.06 0.17 1.487 0.733 0.754 49----------------------------------------------------------------------------1.00% 2.72 23,052 2.32 0.27 0.05 0.13 1.274 0.586 0.688 46----------------------------------------------------------------------------0.95% 2.72 36,359 2.17 0.24 0.05 0.12 1.164 0.511 0.653 44----------------------------------------------------------------------------0.90% 2.72 60,529 2.06 0.21 0.05 0.10 1.068 0.449 0.619 42----------------------------------------------------------------------------0.85% 2.72 93,139 2.00 0.20 0.05 0.09 1.000 0.408 0.592 41----------------------------------------------------------------------------0.80% 2.72 120,526 1.96 0.19 0.05 0.08 0.961 0.385 0.575 40----------------------------------------------------------------------------0.75% 2.72 135,033 1.94 0.18 0.05 0.08 0.941 0.375 0.566 40----------------------------------------------------------------------------0.70% 2.72 138,967 1.94 0.18 0.05 0.08 0.935 0.372 0.563 40----------------------------------------------------------------------------0.579% 2.72 140,259 1.93 0.18 0.05 0.08 0.933 0.371 0.562 40---------------------------------------------------------------------------- Where: HfO2 - hafnium oxide; ZrO2 - zirconium oxide; Nb2O5 - niobium pentoxide; BeO - beryllium oxide Notes: 1. Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3 2. Heavy Rare Earth Oxides (HREO) include: Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3 3. Light Rare Earth Oxides (LREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3 and Sm2O3 4. Effective date of the resource estimate is 8 April 2011 5. Resource estimate based on drill core assays from Quest's 2009 and 2010 assay database. 6. Wardrop considers a cut-off grade of 0.579 TREO% to be reasonable based on a Whittle pit optimization on the current block model. 7. Average specific gravity is 2.72 g/cc for the subsolvus rocks and 2.74 g/cc for pegmatite rocks. 8. The resource estimate has been classified as Indicated and Inferred Resource based on the following criteria: - any block estimated on the first pass, using a minimum of 3 drill holes, at an average distance of less than or equal to 80m and where the closest point is less than 60 m is classified as Indicated Resources. - any block estimated using a minimum of 2 drill holes at an average distance greater than 80 m is classified as Inferred Resources. 9. Resource Estimate is based on: - A database of 97 drill holes, totalling approximately 17,474 m of diamond drilling, using 8,297 composite samples on 2m composite lengths. - A geological model for pegmatite rocks used an Indicator Kriged (IK) wireframe, defining a 45% probability of achieving pegmatite was generated on a block size of 5 m x 5 m x 5 m. - A geological model encompassing the host subsolvus granite rocks was bounded to within 50 m area of influence beyond the outer drill holes. - Block model was estimated by Ordinary Kriging (OK) interpolation method on block size 5 m x 5 m x 5 m. The OK estimation was generated on the two separate domains, the subsolvus granites and the pegmatites. - Resource Estimate assumes 100% recovery.
"Wardrop's Revised Resource Estimate for the B-Zone REE deposit reported today confirms that the B-Zone will likely become a very important rare earth oxide source, particularly for the high-value Heavy Rare Earths," said Peter J. Cashin, Quest's President and CEO. "The Indicated Resource base case will more than satisfy the notional 25-year production model established by our recent PEA at slightly higher REO grades than were used for the cash-flow model in the original study. We are particularly pleased with the important firming of the surface outcropping "Pegmatite Spine" Indicated resource, which show REO grades that are 43% higher than the grade used by the PEA and would support a minimum 6.6 years at the notional annual production rate of 1.46 million tonnes in our PEA. Drilling is also currently underway to expand the B-Zone resource outside of the limits of the deposit established for the Resource Estimate. This work will greatly expand the important mineral inventory that we have built on the property."
Quest intends to move the Strange Lake Project to the Pre-Feasibility Study stage of evaluation. Quest has received Proposals for the work required for the study and the work is anticipated to commence shortly.
Table 1b - Inferred Category Resource, B-Zone Deposit, Strange Lake Project, Quebec ----------------------------------------------------------------------------TREO Density Tonnage ZrO2 Nb2O5 HfO2 BeO TREO HREO LREO HREO/% % % % % % % % TREO----------------------------------------------------------------------------Cut-off t per t x Ratio m3 1000 ----------------------------------------------------------------------------1.20% 2.73 2,572 2.57 0.30 0.06 0.15 1.532 0.764 0.768 50%----------------------------------------------------------------------------1.10% 2.72 4,033 2.36 0.27 0.06 0.13 1.391 0.663 0.728 48%----------------------------------------------------------------------------1.00% 2.72 8,299 2.13 0.23 0.05 0.10 1.210 0.535 0.676 44%----------------------------------------------------------------------------0.95% 2.72 14,421 2.02 0.21 0.05 0.09 1.109 0.465 0.644 42%----------------------------------------------------------------------------0.90% 2.72 26,825 1.94 0.19 0.05 0.08 1.023 0.410 0.613 40%----------------------------------------------------------------------------0.85% 2.72 47,205 1.89 0.18 0.05 0.07 0.958 0.372 0.586 39%----------------------------------------------------------------------------0.80% 2.72 70,286 1.86 0.17 0.05 0.06 0.915 0.349 0.566 38%----------------------------------------------------------------------------0.75% 2.72 84,291 1.84 0.16 0.05 0.06 0.892 0.338 0.554 38%----------------------------------------------------------------------------0.70% 2.72 88,383 1.84 0.16 0.05 0.06 0.885 0.335 0.550 38%----------------------------------------------------------------------------0.579% 2.72 89,629 1.83 0.16 0.05 0.06 0.882 0.334 0.548 38%----------------------------------------------------------------------------
Understanding the Rare Earth Metal Market
The discovery of significant quantities of rare earth metals in the Strange Lake area has driven Quest to focus on this new, highly valuable set of metallic commodities and to broaden its mineral asset base. Currently, 97% of the world's rare earth metals are produced in China, whose abundant resources and low production costs have made it a key source of these metals. China has placed strict controls on REE mining, production and export in order to maximize its own use of the resources. As a result, the past 4 years have brought fundamental change to the global industry, taking it from oversupply to demand shortages. Of the total rare earths produced by China, 98% of these are termed Light Rare Earth Elements (LREE), the more common members of the Lanthanide series on the Periodic Table of Elements. Most of the current applications which use rare earths are LREE because of greater Chinese availability of these metals. Alternatively, China produces only very small amounts of what are termed Heavy Rare Earth Elements (HREE). A lack of an abundant primary supply of the rarer, more valuable HREE has impeded the expansion of the R&D capacity for the industries that would prefer to use them. Quest's Strange Lake deposits are enriched in the HREE and present themselves as potentially important primary, non-Chinese sources of these metals. Recent declarations by the Chinese Government acknowledge that they may become net importers of HREE by 2014 or 2015 (Chen, Chinese Rare Earths Society, February 2011).
During the 1990s and early 2000s, significant production surpluses and coincident low REE prices led to most non-Chinese rare earth producers ceasing their operations and almost exclusive reliance on China supplies. With the curbing of exports from China and continued growth demand elsewhere, the supply-demand deficit is causing great concern to major REE consuming countries (Japan, Korea, Taiwan, Euro zone, United States), and they are anxious to identify new sources of rare earths. According to various media sources, excellent prospects for growth in the hybrid auto manufacturing, aerospace, defence and electronics industries are anticipated and will contribute to demand growth in REE of 8-11% per year. There is a pressing need for new non-Chinese production capacity in the next three to five years. This has focused attention on the re-opening of the Molycorp operation in Mountain Pass, California, on probable production increases from the Kola Peninsula, Russia and Lynas Corporation's plans to process Mount Weld ore in Australia, generally all Light Rare Earth enriched deposits. Other potential REE sources such as Nolans, Australia and Hoidas Lake and Nechalacho (Thor Lake) in northern Canada are also being considered for potential production.
On the basis that China will adhere to the announced production and export limits, there is a real prospect that by 2014 to 2015 the country will only produce sufficient material to satisfy its domestic consumption requirements. To meet the estimated global demand of 200,000t REO in 2012, approximately 60,000t of new capacity will be needed to meet the unfulfilled demand from outside China. In addition, it is estimated that world demand could reach 225,000 tonnes of REE per year by 2015, up from 135,000 tonnes in 2008 (IMCOA, February 2011). Primary production is unlikely to keep pace with the increasing demand.
2011 Winter Exploration Program
Quest is currently undertaking diamond drilling on Lac Brisson ice to test for the northern continuation of B-Zone Pegmatite mineralization. To date, 13 holes for 1839.1 m have been completed (see Figure 2, Table 3). All holes have intersected mineralized pegmatite and granite. Core samples have been sent to the lab and results are pending. This work continues and will be completed by the end of April.
Qualified Persons
Peter Cashin, P. Geo. is the Qualified Person on the Strange Lake Project. Mr. Cashin has read and approved the disclosure of the technical information in this news release.
Paul Daigle, P.Geo., Senior Geologist with Wardrop, is the Qualified Person responsible for the mineral resource estimate. The effective date of the resource is April 8, 2011.
The technical information contained in this press release has been reviewed and approved by John Smith, P.Geo., Senior Geologist for Wardrop, a qualified person as defined by NI 43-101.
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This is the board for Quest Rare Minerals Ltd. listed on the Canadian TSX Venture Exchange as QRM.
AFTER LISING ON THE AMEX EXCHANGE, IF THE COMPANY USES THE SYMBOL QRM ON THE AMEX, THIS WILL BECOME THE US HOME BOARD FOR THE COMPANY!
QUEST RARE MINERALS Ltd. (IBOX UNDER CONSTRUCTION AND SUBJECT TO CORRECTION)
IHUB QRM BOARD EDITORIAL (OPINION) NOTE:
This company, Quest, is essentially about HEAVY rare earth element demand. If you do not fully appreciate this most profitable side of the rare earth play, please read the "Seeking Alpha" article posted at the bottom of this IBOX. Light rare earth demand will be met within about two to three years by the "seniors", Molycorp and Lynas, making the other light rare earth junior miners too late to the party when and if they come on-line in 4 or 5 years. But the big and unmet future demand will be for the most profitable rare earths: HEAVY rare earth elements (HREE). The senior mining companies will produce relatively little HREE. And National Security uses for HREE, among other commercial applications, make Quest a very serious HREE investment option out of the various potential "junior" miners.
For example, the Strange Lake prospect is estimated by the company to have a 20 year of cash flow of over $7.9 billion dollars and would cost just over $500 million to develop and operate over that period:
7
Do your own due diligence. You can start with the articles attached to the very bottom of this IBOX. Good luck!
"OBJECTIVE" INFORMATION FROM COMPANY WEBSITE:
Quest Rare Minerals Ltd. is a Canadian-based, exploration company focused on the identification and discovery of new world-class Rare Earth deposit opportunities. The Company is publicly-listed on the TSX Venture Exchange as “QRM” and is led by a highly-respected management and technical team with a proven mine-finding track record. Quest is currently advancing several high-potential rare earth projects in Canada’s premier rare earth exploration areas: the Strange Lake area of northeastern Québec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest continues to pursue high-value project rare earth opportunities throughout North America.
The company trades in the United States on the Pinksheets under the symbol QSURF. Pinksheets.com rates the company as a "Current Information" company. www.otcmarkets.com/stock/QSURF/company-info
Corporate Essentials from corporate website:
Quest Rare Minerals Ltd. is incorporated under the laws of Canada. There is no individual who directly or indirectly beneficially holds a controlling interest in or who otherwise controls or directs Quest based on their shareholdings.
Quest Rare Minerals Ltd.
65 Queen Street West,
Suite 2010, P.O Box 68
Toronto, Ontario
M5H 2M5
Tel: (416) 916-0777
Toll Free: 1 (877) 916-0777
Fax: (416) 916-0779
Email: info@questrareminerals.com
Website: www.questrareminerals.com
Exchange & Symbol
TSX-V: QRM
Pinksheets: QSURF
Delayed TSX Quote: click here
Shares Issued and Outstanding (as of October 21, 2010)
Issued: 56.6 million
Fully Diluted: 67.1 million
Filings
More details regarding Quest Rare Minerals Ltd. can be found by reviewing the documents currently on file with: SEDAR [System for Electronic Document Analysis and Retrieval] here.
Ernst & Young audit reports for 2009 & 2010, dated 2-21-11:
www.questrareminerals.com/pdfs/QRM%20Financial%20Statements%202010.pdf
Reporting Jurisdiction
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador
CUSIP Number
#74837D105
Auditors
Ernst & Young LLP
Ernst & Young Tower
P.O. Box 251, 222 Bay Street
Toronto-Dominion Centre
Toronto, Ontario
M5K 1J7
Transfer Agent and Registrar
Computershare Investor Services Inc.
1800 McGill College Avenue, 7th Floor
Montréal, QC H3A 3K9
Legal Counsel
Heenan Blaikie LLP
200 Bay Street, South Tower, Suite 2600
Toronto, ON M5J 2J4
Newswire Service
Market Wire
8th Floor 48 Yonge Street
Toronto, Ontario
M5E 1G6
Investor Relations
Quest Rare Minerals Ltd.
Peter J. Cashin, P. Geo
President, CEO and Director
Tel: (416) 916-0777
Email: info@questrareminerals.com
Corporate Communications
RM Communications Inc.
275 Richmond Street West
Toronto, Ontario
M5V 1X1
Reports and Presentations:
New Orleans Investment Conference - October 25-31, 2010
Download PDF (4.2 MB)
Quest Corporate Presentation - October 8th, 2010
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Quest Corporate Presentation - July 27th, 2010
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Management Team
Peter J. Cashin, President & CEO
Over 30 years of experience in all facets of the mines and minerals industry. Peter graduated from McGill University with a Masters of Science degree in 1985. Mr. Cashin has worked for Major and Junior mining exploration companies in Québec, Ontario, the Maritimes, the United States and overseas. Peter also worked for a period with the Ontario Ministry of Northern Development and Mines in the area of mineral resource promotion and marketing.
Robert L. Leclerc, Chairman of the Board
Robert L. Leclerc, Q.C., is a business and legal advisor and current Chairman of Minefinders Corporation Ltd. Bob holds a Bachelor of Arts degree (Honours) from the Université de Montreal and a Bachelor of Civil Law degree from McGill University. Mr. Leclerc was formerly Chairman and Chief Executive Officer of Echo Bay Mines Ltd., and prior thereto was its Chairman. Before joining Echo Bay, Mr. Leclerc practiced law in Montréal (from 1968 to 1978) and in Edmonton (from 1978 to 1996).
Mackenzie I. Watson, Honorary Chairman
Mackenzie I. Watson has over 45 years of exploration experience and has been involved in the discovery of numerous mineral deposits throughout in Canada. He was awarded Canada's Prospector of the Year Award in 1991 and 2009 and the Québec Prospector of the Year Award in 1992 for his participation in the discovery of numerous mineral deposits. His discoveries include the Icon Sullivan copper mine, the Ellison gold deposit, the Hébercourt copper deposit and the Pusticamica and Verneuil gold deposits in Québec. His team also discovered the Harker Holloway gold mine and recently, the Black Thor chromite deposit in Ontario.
Ronald Kay, B Eng (Geo), M.B.A. - Chief Financial Officer and Director
Ronald Kay is a metallurgical engineer with 40 years experience in the financial industry. Mr. Kay holds an MBA degree from McGill University. Mr. Kay’s positions in the industry include senior mining analyst as well as consultant to several major brokerage companies. He is the author of major reports on the uranium industry. Mr. Kay was the president of the general partner of six limited partnerships that raised more than $50 million for mining companies, including Aur Resources Inc., and the chairman of a general partner of a limited partnership that raised approximately $5 million for exploration and development for oil and gas companies. Mr. Kay is an officer and director of Freewest and a director of Murgor Resources Inc.
Neil Wiener, B.C.L., LL.B. - Corporate Secretary and Director
Neil Wiener is a partner in the Montréal office of Heenan Blaikie LLP, where he has practiced since 1981. He was called to the Québec Bar in 1981 after obtaining his B.C.L. and LL.B. degrees from McGill University in 1980. He was called to the Ontario Bar in 1989. Mr. Wiener practices exclusively in the area of securities law, with emphasis on public financings. He has been involved in numerous public offerings, for both issuers and underwriters. Mr. Wiener has also been involved in private placements, take-over bids, going-private transactions, stock exchange listings and a broad range of other securities matters. Mr. Wiener was a lecturer in Business Law at McGill University from 1989 to 2000 and speaks frequently at conferences relating to corporate finance and securities matters.
Daniel B. Larkin, P. Geo. - Director
Daniel Larkin holds a B.Sc. degree in geology from the University of Ottawa and an MBA degree from the Schulich School of Business of York University, Toronto. From 1970 to 1992, Mr. Larkin worked for Imperial Oil Ltd. in mineral exploration, and as a manager, oil sands economist and researcher, government affairs manager, and a senior executive in minerals. In 1993, Mr. Larkin joined the National Research Council of Canada, where until 2002 he identified technologies ready for commercialization in the resources industries, and assisted in their spin-out. He is the founder and a director of PharmaGap Inc., a biotech company listed on the TSX Venture Exchange which is developing new cancer compounds.
Mr. Larkin is a past president of the Geological Society of the Canadian Institute of Mining, and of the Calgary Mineral Exploration Group. He is a member of numerous geological and mining organizations, a “Qualified Person” as defined by NI 43-101, and a Certified Professional Geologist of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). Mr. Larkin has participated in creating several capital pool companies listed on the TSX Venture Exchange, including two as President.
Michael Pesner, BCA, BA - Director
Michael Pesner has been President of Hermitage Canada Finance Inc. since 2002, a firm specializing in financial advisory services. He was previously a senior partner in financial advisory services at KPMG LLP, Chartered Accountants, in Montreal, specializing in corporate finance, mergers and acquisitions, divestitures, restructuring and corporate recovery in Canada. Mr. Pesner holds a Bachelor of Commerce degree in Finance and Administration from McGill University as well as a Bachelor of Arts degree from Sir George Williams University. Mr. Pesner is also a Chartered Accountant, a licensed Trustee in Bankruptcy and a Certified Insolvency and Restructuring Professional. Mr. Pesner is a director of Prestige Telecom Inc., a company listed on the TSX Venture Exchange, Bitumen Capital Inc., a capital pool company listed on the TSX Venture Exchange, and San Anton Capital Inc., a capital pool company.
Mark Schneiderman - Treasurer
Mr. Schneiderman is a Chartered Accountant and a Certified Fraud Examiner. He has over 26 years of financial administration experience including partnership in an accounting practice and senior audit position at Via Rail Canada Inc. He has been with the Group of Companies since 1996.
Jeff Phillips - Member of Management Advisory Board
Mr. Phillips is currently President of Global Market Development in San Diego, California. Mr. Phillips brings extensive experience in the areas of finance, business development, and corporate communications for publicly traded companies. His past natural resource clients have included: Metallica Resources, Ultra Petroleum, Silver Standard Resources, Strathmore Uranium, Penaco Energy, Guyana Goldfields, and Boron Chemicals. Mr. Phillips currently sits on the advisory boards for Animas Resources and Rare Element Resources.
Dr. Steve Zajac, M. Sc., P. Geo. - Member of Management Advisory Board
Dr. Zajac has had an illustrious 45-year career in the Canadian and International mineral industry which included the discovery and subsequent evaluation of the Strange Lake REE deposit when he was the Chief Geologist of the Iron Ore Company of Canada (IOC). Dr. Zajac obtained his BA and MSc degree from the University of British Columbia and a PhD from the University of Michigan. Steve has worked in progressively ascending roles while with IOC, Hanna Mining and its affiliates and currently has an active international mining consultancy. He is a member of the Society of Economic Geologists.
Amy McQuade - Member of Management Advisory Board
Mrs. McQuade is Vice President of Global Market Development (GMD) in San Diego, California. Prior to joining GMD, Amy was Vice President of Business Development for the Western U.S. and Asia for the American Stock Exchange (AMEX) for twelve years. She worked with IPO's, reverse mergers, and transfers from other exchanges. Prior to joining the Amex, she spent seven years at Lehman Brothers in Fixed Income Trading and Global Asset Management. She graduated from Lafayette College with a degree in Finance and pursued graduate studies at Columbia University.
EXPLORATION TEAM
Pierre Guay, B. Eng (Geo) - Manager of Exploration
Mr. Guay is a geologist with 22 years experience in mine development and production. He was previously an Area Geologist with Vale Inco Exploration and has worked for Vale (formerly Inco Limited) for the past 19 years. Pierre received his Bachelor of Geological Engineering from the University of Quebec at Chicoutimi in 1987 and has had a broad-ranging international mineral exploration career. He is a member of the Prospectors and Developers Association of Canada and the Ontario Prospector Association.
Patrick Collins, M. Sc. - Senior Project Geologist
Mr. Collins is a geologist with four years experience in mine exploration and development. He was previously a geologist with Vale Inco Exploration and with Crosshair Exploration and Mining. Patrick received his Honours Bachelor of Science from Dalhousie University in 2003, and his Master of Science from Memorial University in St. John’s Newfoundland and Labrador in 2006. He is a member of the Prospectors and Developers Association of Canada.
Rare Earth Element Primer: theinvestar.com/articles/2011_01_12.htm
"Seeking Alpha" Article Published 01/03/11:
"After Molycorp (MCP) and Lynas (LYSCF.PK) go into production in the next two years as the only major rare earth miners outside of China, there remains a slew of junior rare earth mining stocks with projects in the pipeline. Many of these junior miners have seen price appreciation far greater than that seen by Molycorp and Lynas in the second half of 2010.
When we look at junior mining companies, a major milestone is the 43-101 filing in Canada or the equivalent filing in Australia. The 43-101 filing is a Canadian filing where the firms present the data on the deposit in question and other data establishing whether a resource qualifies as indicated, inferred, and also comment on the economics of the deposit. Mining projects need this filing in order to move forward in the development process to scoping studies, pre-feasibility, feasibility, permitting, etc. We are not geologists so we will not pretend to be experts, but we have figured out that any deposit that is anywhere but at the beginning of the mine development process (a process that takes 10 years usually) has a 43-101 filing.
The following junior rare earth mining companies have a 43-101 compliant deposit (not including Molycorp and Lynas as they are already on path to production in next two years so they are not considered junior miners by us):
By now with the media attention in last three months, we will spare you an explanation of the great economics of rare earth miners over the next five years due to the growing demand and the restricted supply resulting in a massive deficit that needs to be fulfilled. We also won’t go into the fact that 97% of current development comes from China. We know at this point that barring a major event Molycorp and Lynas will be going into production in the next two years as the only two non-Chinese producers.
We believe in the rare earth fundamental story and profited handsomely off it in 2010. We think further upside remains and the eventual outcome will be a panic bubble that will offer outstanding returns. But as we pointed out in our article about the general commodities bubble on Seeking Alpha, the mania of the bubble will bring more supply online and that will pop the bubble. So with those thoughts in mind, there are three questions we must ask when going and looking at which rare earth companies to invest in besides Molycorp and Lynas.
1) When will the mine be in production?
2) What will be the cost of production?
3) What is the metallurgy of the deposit?
We have done an analysis of the rare earth junior mining sector based on these three questions. We gave value to companies further along in the development process on the basis that they will be able to profit from the positive economics over the next five years and will not be as susceptible when a supply glut occurs. Companies also were given value for low cost production as once supply catches up with demand the low cost producers will be the ones that survive the bubble burst. Regarding the third question, miners with a high percentage of heavy rare earths (HREE’s) were given value since HREE’s are not heavily concentrated in the Molycorp or Lynas mines coming into production in the next two years.
With respect to the first question of production date, we eliminated the majority of projects that are not at the midway point or at least close to the midway point in the mine development process. Based on the production coming online schedule starting in 2013, we think that any deposit that arrives post-2016 is going to be either late to the party or will only reach production after being bought out by a current producer.
That eliminated some miners such as Tasman Metals which has the only 43-101 compliant rare earth deposit in Europe. But with the development of Lynas and Molycorp in nations friendly to European interests we do not buy the “European supply security” argument as anything more than a trade on a takeover possibility.
We also excluded companies with geopolitical risk such as Stan Energy which has a mine in Kyrgyzstan. A major part of the rare earth thesis is the reconstruction of a western world supply chain. We have also eliminated the two junior miners in South Africa (Great Western and Frontier) due to the higher political risk associated with South Africa.
We also eliminated Greenland Minerals because its deposit contains a substantial amount of uranium and the government of Greenland currently has a zero tolerance policy toward mining assets involving uranium. While the deposit is very compelling, there are many junior uranium mining companies in Australia that couldn’t outlast the bans on uranium mining in that country. We also are not inclined to wait for politicians.
We eliminated Alkane Resources because based on its corporate presentation the project is minimal in rare earths with expected production of less than 5,000 tons per annum with other mineral products the primary focus of the project. We also noted that while the deposit is not classified as radioactive there is enough uranium in the deposit that Alkane put a note in its presentation that the New South Wales province in Australia bans uranium mining.
That leaves us with the following junior mining companies as remaining investment candidates: Arafura Resources, Avalon Rare Metals, Quest Rare Minerals, Rare Element Resources, and Matamec Explorations.
The production schedule profile is as follows:
From the outset we can divide these five companies into two groups: The light rare earth element producers (Arafura and Rare Element) and the heavy rare earth producers (Avalon, Quest, Matamec). Based on the drill results highlighted in the Matamec corporate presentation on its Kipawa deposit, we removed them from our list of potential investments because the drill results indicate concentrations inferior to those at Avalon and Quest. Combined with being earlier on in the development process, it makes Matamec an unlikely winner.
First of all we need to consider the light rare earth element companies in terms of the economics, cost of production, and time of production. In a recent corporate presentation, Lynas forecasted that in 2014 demand for rare earths would exceed supply by 20,000 tons which did not include any production from the Nolans deposit owned by Arafura. The annual production from Arafura would fill that supply gap.
We also would like to note as a sidebar that all the data we have seen in the corporate presentations of these companies talk about the positive economics through 2014, but most of them do not have production set to come online prior to 2014 so it’s not relevant to their deposits.
The one potential issue we see with Arafura is that Molycorp has adjusted its CAPEX budget on the Mountain Pass mine so that they can double production if they so desire. If Molycorp doubles production, it would fill that supply gap at a lower cost of production than Arafura. Molycorp can produce Rare Earth Oxides at a cost of $1.27/lb. which is a low cost for the entire world including China due to improved technologies that have been tested.
For this reason we see risk in Arafura, however we do note that the Chinese have a substantial stake in Arafura which we think means that it has been earmarked as a potential outside source for rare earths once Chinese demand outpaces Chinese supply. But we are not about to suggest a company on that premise alone.
In this context, we do not see Rare Element Resources as a good investment. Between Arafura being further along in the development process plus Molycorp having the potential to double production, we do not see necessarily the supply deficit for Rare Element Resources to fill when Bear Lodge comes online in 2015 (if there are no delays).
We do think that it is a likely takeover target for Molycorp in four or five years. Molycorp is not just developing a mine, but they are developing products from their rare earth oxides. They are building a rare earth product supply chain vertically “mine to magnets." Once Mountain Pass is exhausted after 30 years (or 15 years if they double production rates as we expect them to do), Molycorp will need a second mine and the logical light rare earth successor to Mountain Pass in the United States is Bear Lodge. But it is quite likely that Bear Lodge will sit doormat for a long time before Molycorp swoops in to take it over. We do not think at this time and at these valuations that Rare Element is compelling when we consider the likelihood of a 2015 production start date to be very minimal due to regulation hurdles, environmental permitting and our respect of Murphy’s Law.
We are being very conservative in our rare earth global demand growth projections post-2014. We are basing our assumptions for the supply/demand dynamics on the very positive forecasts we have seen from sell side analysts, newsletters and the companies themselves. However, since these are high risk investments and since these are development stage companies, we are not about to add further risk by assuming that demand will grow above and beyond expectations.
We have seen one corporate presentation from a junior miner where they projected a surplus of light rare earth oxides such as cerium in 2014 while there is a deficit in heavy rare earths. With Molycorp’s ability to double production at the lowest cost of production worldwide, we are inclined to stay on the sidelines going into 2011 with respect to light rare earth junior miners such as Arafura and Rare Element Resources.
Global demand will be 180-200 thousand tons of rare earths depending on the forecast you read for 2014. It is a 10% spread, but on the margin it is the equivalent of one new mine in annual production based on some of the projections we have seen from junior miners in terms of annual production. If we take the optimistic 200,000 tons of Rare Earth Oxides for 2014, and assume a 5% growth rate going forward, then we can accommodate Molycorp doubling production and Arafura’s production. We cannot however accommodate Rare Element’s production without going into surplus because of the heavy rare earth mines scheduled to go into production in 2015.
Avalon Rare Metal’s Nechalacho deposit is scheduled to go into production in 2015 currently. It is - according to the company - the second largest rare earth deposit in the world, and the most advanced heavy rare earth deposit. As a producer of heavy rare earth oxides, it will have first mover advantage in the specific rare earths where the metallurgy of Mountain Pass and Mt. Weld are deficient. The one drawback on the deposit is that it is not capable of being mined via the cheap open pit method, so it will not be the low cost producer once Quest’s Strange Lake deposit goes into production (Open pit mining is a third the cost of underground).
Quest Rare Mineral’s Strange Lake deposit is projected to go into production in 2016 with an open pit style mine. The heavy rare earth concentrations in the deposit are superior to Avalon’s deposit according to the companies' corporate presentation.
With the heavy rare earth oxide component of the deposits, we have come to the conclusion that Quest Rare Minerals and Avalon Rare Metals are two junior miners that are good speculative high risk investments as a way to invest in the rare earth space at this time, in addition to positions in Molycorp and Lynas. Because of the low cost production status of Molycorp in addition to its efforts in building a vertical rare earth production chain, we are more bullish on Molycorp than Lynas.
Obviously in this analysis we have set aside many junior mining stocks for different reasons that could very well go into production and change the forecast entirely. The Greenland Minerals deposit for example has projected annual production of 40,000 tons, which would account for 20% of 2014 global demand and combined with Molycorp and Lynas production would remove any supply deficit. At the same time, not all these junior mining companies will be successful in bringing their deposits all the way to production.
With this in mind, we have come to the conclusion that the best risk/reward lies in the junior heavy rare earth miners and the first two to production are Avalon and Quest based on current development schedules. Both of their deposits also have substantial light rare earth components, but the primary value is in the heavy rare earths. But in addition to filling a supply deficit in the heavy rare earth space, they will be adding supply to a light rare earth market that we believe will go into a surplus state in the middle of this decade and keep other junior miners out of production.
We also think that Avalon and Quest are attractive takeover targets for Molycorp later this decade as they approach producer status. The heavy rare earth metallurgy would fill a gap in the Molycorp portfolio since heavy rare earths there are only 18,000 tons of heavy rare earths in the Mountain Pass deposit, according to the Avalon corporate presentation.
A major part of our long term view on the rare earth industry is that Molycorp as first mover, low cost producer, and developer of the “value added chain” in North America (see joint venture with Hitashi) will become the major rare earth company in the similar vein that Freeport McMoRan (FCX) is the major copper company or Barrick Gold (ABX) and Goldcorp (GG) are the gold mining majors.
Molycorp will look for additional mines post-Mountain Pass to feed its new domestic rare earth product production chain. If they double production as we expect they will from their projected 20,000 tons per annum, then the mine life by simple arithmetic reduces to 15 years. Fifteen years from 2012, suggests to us that the need to make a light rare earth deposit acquisition will not be a priority until the later part of this decade when the logical target will be Rare Element Resources’ Bear Lodge deposit in Wyoming.
The heavy rare earth acquisitions we could see occurring on a shorter time frame sometime in 2013 or 2014. With the proceeds from its August 2009 IPO plus the $100 million in common stock bought by Sumitomo, Molycorp has financed bringing Mountain Pass back into production primarily through equity so they can look at an acquisition very soon after production, in our opinion. Because we are not geologists, we would suggest buying both Quest and Avalon as we are not sure which one will be the target.
We would look to take the capital in your portfolio allocated to rare earths and divide it up as follows: Molycorp 35%, Lynas 30%, Avalon Rare Metals 15%, Quest Rare Minerals 20%. We think this offers a good balance of near term production with awesome economics, diversification in the event of an incident, and leverage to promising future producers.
With respect to entry points, we think Quest and Avalon are buys at current levels. As junior names they will be volatile and we think that trying to time them is not a good exercise as we are looking for one of these names to be one of our 10 bagger names. With respect to Lynas, we think current levels present a buying opportunity.
Molycorp has become very frothy this past week and our entry points would be in the areas of the Fibonacci retracement levels $41.26 and $37.97, which represent the 50% and 61.8% retracements of the move in Molycorp so far this month or in the event a new 52-week high. But despite last Tuesday being the one of the lowest market volume days of the year, Molycorp had its biggest volume day ever and had an intra-day reversal of over 15%. A similar day market the end to the last major move up in Molycorp, so we would anticipate additional weakness in Molycorp going into January.
It sounds a bit hypocritical to say this about the company ... we think it will be the big winner in the rare earth production race. But the reason is very simple. JP Morgan has a 2013 earnings estimate of $5.23, so Molycorp at the peak of its December rally was trading at greater than 10x its earnings power in 3 years. Part of the major move in Molycorp was due to the fact that there is a very limited supply of rare earth mining shares available to U.S. investors since many are not willing to buy Canadian listed names via the over the counter market.
With the listing of Rare Element Resources and Avalon on the AMEX this year and the bumps both companies got as a result, we expect more rare earth juniors will apply for listing on AMEX. The next obvious candidate for this transition is Quest Rare Minerals after completing a feasibility study, which should occur mid-2011.
One final note we would consider on the rare earth space is that for the shareholders that took Molycorp public, their lock up period that prevents them from selling shares ends in January. We think it is certainly a possibility that we see those shareholders sell a major portion of their shares in an overnight deal since they are pre-dominantly private equity funds. We read from second hand sources, but have not verified, that the cost basis for some of Molycorp’s existing shareholders is below $10/share, which sets up those private equity fund managers for a very attractive carry once the investment is fully realized. So with those incentives to consider, we think a share sale from Molycorp is possible in the January or February period if it is trading around $50/share.
Despite that bearish near term view on Molycorp, we expect rare earths to be a big winner again in 2011 and reiterate our view that they should be a part of readers’ portfolios.
Also see:
Good luck with your own research and due diligence on this up and coming heavy rare earth element company. QSURF retained Ernst & Young CPA's in December 2010 with the intention of preparing the company for uplisting the QSURD stock from Pinksheets to a higher stock exchange in the United States:
"The appointment of Ernst & Young LLP as our auditors reflects Quest's continued growth and will facilitate any future filings of our financial statements in the United States" said Peter J. Cashin, Quest's President & Chief Executive Officer. "We express our appreciation to Bratt Fremeth Star, who will continue to work with us and our new auditors on specific matters."
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