Strategic Materials

[gfp927z]

Lynas Corporation Limited (LYC)


https://investorplace.com/2020/07/7-penny-stocks-worth-the-danger-as-pandemic-catalyzes-growth/


Lynas Corporation is a rare earths miner. There are many such companies, but what sets Lynas apart is one powerful catalyst: its strategic partnership with the U.S. Government.

The U.S. Government is worried about its ability to produce strategically important minerals. It is particularly worried about its over-reliance on China for strategic minerals used across industries. To that end it has given a contract to Lynas, an Australian company with significant operations in Malaysia. The contract will allow Lynas to begin building a heavy rare earth separation facility in Texas.

When completed, the facility will be the only plant which can separate such metals outside of China. This should make clear the strategic importance of the contract. This looks like a potentially huge business with massive growth potential.

Shares currently trade in the $2.50 range but jumped on the news. The Texas facility design will be ready sometime in 2021. U.S.-China tensions will dominate headlines perhaps for several decades. Thus, shares in companies like Lynas, which benefit from that reality, have great potential to grow for a long period.


Ucore Rare Metals Inc. (UURAF)

Ucore Rare Metals may rise for the same reason that Lynas has risen. However, this seems to be much more speculative. Lynas is clearly a legitimate company with real operations. Ucore has much less transparency behind it. Its website is very thin on information. Nevertheless, it is a stock to keep an eye on.

The company has supposedly developed a new, efficient process for separating and purifying rare earth elements. If it indeed aligns itself with U.S. national defense and can deliver, it should rise exponentially.

<<<