Ucore Rare Metals Inc (UURAF)

[henke]

Byron King January 20, 2011

The Great Rare Earth Supply Crunch :

Heavy rare earths are far less abundant in terms of volumes. The market drivers for heavy rare earths are more in electronics. Think in terms of a fraction of an ounce of material going into the chips and other electronic circuitry in your cell phone or in a small medical device.

The chemical distinctions, let alone the market forces, are pretty hairy within the industry. What it means to us as investors, however, is that we need to look for companies with ore bodies that are rich in heavy rare earths. For all of their respective virtues, Lynas and U.S. based Molycorp have lots of light rare earths and not so much in the way of heavy rare earths.

So is there is a company out there with control over heavy rare earth bodies?

I’m glad you asked, because yes, there is — the company is Ucore Rare Metals

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So why look at Ucore? Because of the ore body. Because of the mining history. Because of location, location and location. Because in the coming rare earths crunch, I can see Ucore teaming up with a larger, better-capitalized firm. Meanwhile, I believe that Ucore has a good rare earths story to tell and it can keep delivering good results until the right partner comes along.

Don’t chase this stock. But accumulate a position. Get on board. Something good ought to come down the road, and sooner, rather than later.

http://energyandscarcityinvestor.agorafinancial.com/2011/01/20/the-great-rare-earth-supply-crunch/