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I'm looking for a good Rare Earth investment. With the coming tariffs, I think China will lock this market up and prices for these products will move upward. Any suggestions outside China, publicly traded? Thanks in advance.
Conclusion
One thing that strikes us here is that Peak have effectively unbundled the mining side from the processing side and thus opened up the potential options for the future. For decades now the trend has been to site both mine and processing in relative proximity.
This thinking has largely sunk the bulk of REE players because to comply with the “logic” one had to locate large processing facilities in inaccessible, infrastructure poor locations with concomitant escalation in capex and the eternal enslavement to issues like the price of diesel. Without naming names one can think of a number of the once mighty wannabes in the REE space that came unstuck on insisting on building the totality of their operations in outlandish locations.
Dare we say it, but the way things are evolving Peak will also potentially have a stranglehold on processing the ore of other REE miners (if and when they should appear) due to the centralized European location, which would otherwise be unthinkable if the processing was inland in Africa. This in itself makes the funding of the processing component in the UK potentially separable from funding of the mine.
Peak are quite rightly throwing out the flawed hymnbook that REE developers, specialty metals producers and other miners have been singing out of for so long. Vertical integration does not mean all facilities have to be in the same place and in these days of cheap shipping rates it is more important to be near to the customers than near to a hole in the ground. This project will be one to watch in 2018 for next moves.
Technology Metals Intel
Good day all, hope you have a nice sunday.
To start with; I reply messages as far as times allows, you understand.
Another thing; click on my name, if you`re intrested of my stockpicks.
So, whats new on rare earth metals... well, soon there will be a meeting.
The industry will gather; share thoughts, questions and do new deals.
I think we are at the right spot at the right time; the industry grows.
Even if it`s just a handfull producers outside China, the trend is up.
Still, even with Peak Resources and the few non-china alternative -
there will be a demand/supply problem soon/increasing.
Consider the amount of HREEs who are projected for various applications, the few companies who actually reach to production
(see Peak Resources) will be able to take advantage of the strong demand.
Off those few; Peak Resources stock is very undervalued today.
Compare with peers; resource size, type of rare earth and management experience in this very special industry.
Finally; the shareprice today, compared with peers - we are going to explode at least 5-10 times to current sharevalue within this year.
So, we are entering a new exiting phase; reports of chinese regulations start being implemented now. The government want to take control again of the supply; they are cracking down heavy on "the big 6" (main producers).
On top of that, they are seeing some progress of "controlling" the unlegal players in the market. I think they will gain more control this year, since they are very motivated to get the taxes AND reducing the pollution of these unlegal activities.
Don`t forget; in chinese culture/politic they have a 50-100 year perspective - they MUST adress enviromental issues and now they are leading the green-revolution, it`s necessary and urgent in todays politic.
According to Technavio, the rare earth metals market is expected to undergo explosive growth by 2018.There are 17 rare earths, but the so-called “magnet metals,” neodymium and praseodymium (NdPr), have attracted the most attention in 2017.
“Attention investors: China is tightening its grips on the rare earth industry forcing plant closures on illegal mining.” (12/12-17) Adamas Intelligence notes that illegal rare earths production in China appears to have declined in 2017, “suggesting that a substantial share of illegal output in past years may have been the result of overproduction by authorized producers, many of which are currently operating under the microscope of central government inspectors.”
Neodymium and praseodymium demand represented 14 percent of total global rare earths demand in 2017, and that amount is expected to increase to over 24 percent by 2027.“The use of permanent magnet motors in new vehicle designs released in 2018 will be an interesting area to watch, more and more models become reliant on permanent magnet designs".
Jack Lifton's Blog
long only, Deep Value. Breaking China's Heavy Rare Earths', HREEs, Production Monopoly: Peak Resources. To Begin production of Dysprosium and Neodymium.
China's Ionic Adsorption Clays have until now been the world's sole commercial source of the heavy rare earths.Peak Resources is now set to break the Chinese monopoly of the new production of critical heavy rare earth elements, HREEs.
Peak Resources will add between 10 and 20% to the world’s annual production of ALL of its HREEs. It is possible that this additional material could be an even higher percentage if China’s production should decline due to mine exhaustion, environmental crackdown (on mining in China) or a combination of both.
We speak to Peak Resources’ Managing Director Darren Townsend regarding the company’s development of the Ngualla Project in Tanzania
Since listing onto the Australian stock exchange back in 2006, Peak Resources Ltd has come a long way. Whilst exploring for phosphate minerals in East Africa, the company discovered rare earth minerals, creating a significant buzz across the mining industry that led to the establishment of its flagship Ngualla Project. Managing Director Darren Townsend explains how the company has taken the project, located in southern Tanzania, from discovery, all the way through to the recent completion of a Bank Feasibility Study.
“We found that there were very high grades of the magnet metal rare earths, neodymium (Nd) and praseodymium (Pr), called NdPr. There are seventeen different rare earth elements, but NdPr are the most important,” he says.
Quickly becoming one of the world’s largest undeveloped neodymium and praseodymium rare earth projects, the company has received its environmental permit for the project and is now moving ahead with the submission of the mining license application.
With plans to export approximately 28,000 tonnes of rare earth concentrate throughout a 30-year mine life, the company will undertake the initial processing in Tanzania, through an on-site multi-stage processing plant. “The high grade processed rare earth concentrate will then be shipped to the United Kingdom to a refinery that will use solvent extraction technologies to complete further processing,” says Townsend.
The management team and advisory board can make or break the business - it`s that simple and true. Thats why I always check out the people involved; they got to be experienced and good at their work.
As this guy; Rocky Smith
Chief Executive Officer
BS Chemistry, Biology, Physics
Rocky has over 35 year’s operations and senior management experience in the mineral processing & chemical engineering sector and brings a great depth of practical, specialist and technical rare earth operations experience to Peak.
Hear him out about the Ngualla Project (he is considred one of the absolute top guys in his field, within the industry ) Former Molycorp executive.
Peak Resources one of the largest rare earth deposits in the world.
Size and HREE (Heavy Rare Earth) is king, Peak got both.
I wanted to show the company status 3 years ago, here you go;
Another view of the rare earth situation globally, enjoy.
Prices for These 2 Rare Earths are Up 50 Percent Year-to-Date.
David Merriman, deputy manager for Roskill Information Services’ minor metals division, discusses factors currently impacting the rare earths market.
Spot prices for neodymium and praseodymium, two of the 17 rare earths, have risen by 50 percent in China year-to-date, according to an August report from research and advisory firm Adamas Intelligence.
“Neodymium-based magnets are the most powerful and strongest magnets available on the market . We do expect to see demand for these materials to increase. Particularly on the autocatalyst side as more stringent emissions controls are input. These require more catalytic material being used and catalytic equipment to take out the emissions".
To put things in comparing; see what is calculated with projects economics. This will make things clearer - we have a huge opportunity;
At today’s NdPr market price of domestic China 375 RMB/ US$ 56.87 (02.11.17) Peak would deliver USD 69.21 Million positive cash only from the projected 2,810t p.a. NdPr sales
Peak Resources is the leading global development project with one of the world’s lowest operating costs of NdPr oxide.
They made a Project update last month, have you read it ?
https://wcsecure.weblink.com.au/pdf/PEK/01907100.pdf
This is a statement of the renewed bankable feasebility study, BFS.
We have a very special presentation today - Peak Resources overall picture.
Giving we bounced back yesterday and gained 6%, this is a excellent entry point or re-fill of the stock.
Confirmation is good, here it comes;
Profiting from the Inevitable Price Increases of Rare Earths in 2018
The rare earth market will have a tremendous 2018. Position yourself now to profit .Risky supply + increased demand = price increases
The U.S. Department of Energy is anticipating a critical shortage of neodymium, europium, terbium, dysprosium and yttrium necessary for green technology development and construction. (US Dept of Energy, Technology Metal Research). With virtually no production outside of China and with the supply response being inelastic, it will take a considerable amount of time for new mines to come online and begin production.
One of UBS’ many interesting conclusions was that the market for rare earths, neodymium in particular, could face demand shocks in case of a rapidly evolving EV market. The material is used in the e-motor magnets
Told you
Sorry, the last piece did not come... but here it is;
What happens ? They will make some deal, with China coming out on top. They will export some more, but not so much as the global leaders wish for. The prices will skyrocket and China will establish even more strength in the global political game. And we... are in position to reap the harvest of our Peak Resources stock.
With risk of being to risk-aware; the global REE market can change from one day to another. No, I don`t see ghosts everywhere... just following the world politic; it`s threats and opportunities. With China as a dominant player in these very important metals, with limited supply available today.
In the rare earth element (REE) space, a couple of points are difficult to overcome: experience and technology. You see, the economical extraction of materials which comprise only a fraction of the total ore is supremely challenging, and so relatively few people have ever actually achieved it to any significant degree.
Furthermore, many hopefuls have been dragged under by the tough metals markets of this last decade, and so only a handful of viable investment options remain intact, regardless of the surging prices of the requisite elements for permanent magnets, neodymium and praseodymium (NdPr).
Usefull reflection on a special topic; REM. So many have failed for various reasons, often the geo-chemical side who is well-known to be difficult and most experts are chinese. It`s intresting to hear Chinas former leader, Deng Xiaping; Saudi-Arabia got oil, we have rare earth metals.
So, it was early that the Chinese realised they had a treasure - they have many years of studying the topic. The global leaders realised they are dependent on the chinese export, even in the USA. Molycorp could not compete with the chinese prices and had to close.
This is the case with other attempts as well, if they got so far as production. Now... we got Peak Resources. They have a management team and board with experience in this special sector. Ex Molycorp and other companies within the industry.
Peak Resources can produce within the same pricerange as the chinese !
This is very nice, they got a few things to sort out yet, then the market will be aware and open. I look forward to good news in the next month, let`s hope we can take a step strong enough for the market to come running
To hear it from a professor, does it make a difference ? Considering we get so many messages in our information society, it`s sometimes hard to be sure of what is right. Still though, does who work in a very special industry (like rare earth metals ) must know a bit more then the rest of us .
Explanation from expert - this is a new perspective on the company, from a well-known insider in the REM industry.
Reflections on what is coming and last weeks stock performance. We where up on 0,056 and landed on 0,051 closing on friday. Technical chart say "The market is approaching oversold territory. Be watchful of a trend reversal".
3 things concerning the low shareprice; the company has not the last permit yet, they have not announced any new off-take agreements with customers and they are not doing any PR/marketing now.
Once one or more of those questions are taken care off, things will change very quickly. Especially, the last permit will be a gamechanger.It`s announced to come in december at the best, possibly until march if they are slower.
Suggestion; use the Investor relations service of Peak Resources, they got first hand information and they are there to give service;
info@peakresources.com.au
Good luck.
Alex
Wall street or China... I think one of these will take a part of the company, once producing. Considering only a handfull of projects in the world, will actually become REM mines. If we are lucky, the official "go" permit can come already in december according to Darren Townsend. He is the largest shareholder of the management team.
So, we have weekend again and sums up the weeks action. It`s been a mix of " buy " and now more neutral mode. The market is approaching oversold territory. Be watchful of a trend reversal. We will see next week, if the indicators get it right.
Technical indicators, research and conclusion. The art of investing; one have to practise and read, listen to professional investors and other sources to learn and be inspired from.
Rick Rule and Stanley Druckenmiller, as 2 examples. Also investment analysing/tips on investingnews and Seeking Alpha.
Who/what do you like to learn/be inspired from ?
I reckon the chinese will have a part in this stock, indirectly. Depending on the continuation of there rare earth metals policy.
Since they have so much contamination of illegal production, the government announced they will strike down on those activities.
If they do, this will probably have some impact on the market.
Furthermore, they have raised taxes for the legal producers and other hurdles, to have more control of there supply. Simply put; they want to decrease the export in a smooth way.
A few years ago when they cut export significant, the WTO had a dispute with them and there was a lot of international tension. We will see how the market react now, since the global market for rare earth metals are escalating with new battery technology, solar panels development and the rapidly growing cutting edge energy storage.
Have a nice weekend, wherever you are. Thanks for messages.
Alex
When the official last permit comes, there will be a huge surge on the stock. Peak got everything in place and is on the way in the conctruction phase. The permit is a formality to actually start producing.
I don`t see any reason why there should be any delays, considering they have worked togheter with the locals and government in all phases of the project.
One thing I wonder though, is the off-take agreements. They are working at this with there customers, but no deal is announced yet.
The sustained rise in prices for NdPr experienced in 2017 is perfect timing for Peak’s Ngualla Project. Prices continue to climb amid predictions of a strong increase in demand for this critical raw material due to the increasing shift towards hybrid and electric vehicles by manufacturers. The mixed neodymium praseodymium oxide (NdPr) price was around US $41/kg when Peak announced the results of the BFS for Ngualla in April 2017, and while the BFS assumed a long-term price of US $85/kg, the NdPr price has increased over 100% since November 2016, and in mid-October 2017 was around US $71/kg.
The strong rise in the NdPr price is particularly important for Peak given that NdPr is Ngualla’s main value driver, representing 90% of the project’s estimated future revenue. The ore material will be separated in Teesside, England via a leach process since the area has access to cheap reagents and is a major port. Crucially, the savings made so far through optimisation of the project have lifted Ngualla far above expectations, and shareholders have recently responded with over US$5m successfully raised to fund further works in the area. Peak’s share price has gained 50% over the last month, and I expect this to surge dramatically when the government of Tanzania comes back with approval. Tick tock.
Hi, understood some of you did not want to click on attached links. So here comes a piece who media wrote recently.
Lara Smith | November 17, 2017
In the rare earth element (REE) space, a couple of points are difficult to overcome: experience and technology. You see, the economical extraction of materials which comprise only a fraction of the total ore is supremely challenging, and so relatively few people have ever actually achieved it to any significant degree. Furthermore, many hopefuls have been dragged under by the tough metals markets of this last decade, and so only a handful of viable investment options remain intact, regardless of the surging prices of the requisite elements for permanent magnets, neodymium and praseodymium (NdPr).
The Ngualla project in Tanzania, 75% owned by Peak Resources Ltd. (ASX: PEK) (“Peak”), benefits from being one of the highest grade REE deposits ever seen, dramatically cutting the cost of extracting the necessary goods. In addition, Peak’s policy of completely ignoring resources which host rare earths in minerals that have not previously been commercially processed means that the risk of advancing an ultimately useless project is almost zero
We had a low trading volume yesterday as well. Still, those who bought had to pay a little bit more then previous day. I reckon many are on "wait and see" mode - hoping for a dip and get in at a lower level.
I don`t think we will see any big dips, cause the majority who buy this kind of stock, know there is a huge potential and understand they have to wait to see a good return of investment. I think this is the calm before the storm...
The question is how will the Big Money react, if we go into a decline in tradingvolume over time ? Well, let`s see how things will develop. By the way, thanks for messages.
Rally on the way... ? take a look at yesterdays trading pattern and check trading volume. We have probably the time, when there is no room for any more significant dips.
Another thing; watch 2 month back, it bottomed at 0,035 the 10 of october and had a minor rush to 0,070 peaking on 9 of november. 100% gain within 1 month if maxd timing.
Considering a tradingvolume of about 100 000 yesterday, compared to average 1, 7 million - it will be intresting to see the coming days. It might be on the verge of a good run.
Good luck everyone.
History often repeats itself, I think what we are watching now is the same build-up as in 2011-2012. The difference is that now the worlds leaders, have agreed on more strict climate commitments. AND they got the MARKET with them.
One "funny" thing is Chinas new approach; they hesitate to sign binding carbon decrease goals, but they voluntary take a very strict policy now regarding EV, by 2020 they will no longer produce gasoline cars at all.
The smog is such a big problem with health issues that they are leading the "green revolution" now with billion dollar investing in EV, solar panels and energy storage.
Look at the "explosion" 2011/2012 https://www.barchart.com/stocks/quotes/PEK.AX/overview
Visiting the Project and talking to the people - it looks like Peak have done a great job with connecting all the dots.
https://www.miningreview.com/news/peak-resourcestanzanian-minister-of-minerals-backs-ngualla/
Latest news - and they are good https://investorintel.com/sectors/technology-metals/technology-metals-intel/peak-resources-final-hurdles-rare-earth/
It will be intresting to see the value of the stock within a year from now.
When one considers the value today, it looks like a good chance for huge gains. In this time a year from now, they will produce revenue and cash.
There market value will be substansial compared to todays valuation.
Check out this video presentation for 2017 and compare where we are now -
http://www.peakresources.com.au/news/peak-resources-prime-rare-earth-mover-in-2017/
Take care, Alex
A Youtube-clip with a presentation of the Company. The various milestones they reached so far and milestone schedule where they are now.
Notice this; they have 2 financial Groups backing them all the way - very rare for a junior miner.
Now it`s construction in a relative quick phase; it`s a open-pitt model mine and they are reaching production start in next year.
Rare Earths to production ! Yes, this is really rare... but, this one got it all. It has passed all challenges and now is on the way to Construction.
Considering there is about 95% of all rare Earths global production in China, I think the market will welcome this top notch company.
Goverments are afraid China will put the plugg on export - or at least as already happned today; cut down the export beacause they need a lot themself in the green energy and EV market.
So, there is a huge demand of there products, they are in pole position to take advantage of a mega market rising.
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