Best Rare Earth Metals Stocks Canada
It seems that the most effective way of buying precious metals, as opposed to investing in REMs, is in the companies that trade them. The other argument is that investing in companies that deal with REMs is not unlike other institutions in the stock market. Investing in stocks or bonds in Rems, for example, to buy silver, does not require the investor to overlook the company’s logistics or, for example, to keep an eye on market prices for gold and silver.
With China accounting for more than 60 percent of the world’s annual rare earth elements production, Western nations have secured alternative supply chains for rare earth. Other companies are considering significant investments to build global processing capacity, but that will take time and hundreds of millions of dollars, if not billions of dollars, to mention the ore supply contracts that must be processed in China.
Some of the TSX and TSXV listed rare earth companies offer access to non-china rare earth resources and are a compelling choice for investors who are optimistic about the future of this exciting market. The names to watch include Arafura Resources (Vital Metals), Pensana Rare Earths (which encourages Appia Energy to search for minerals) and Rarex Limited (another reason to write about it).
According to Natural Resources Canada, three Canada-based rare earths (REE) (a term used for REM exploration projects) contained significant concentrations of at least 20% heavy rare earth in 2017. China controls much of the value chain, and its Gorilla in the room is Don Lay, CEO of Medallion Resources, a Toronto-based company of Innovation Metals Corp., which has spent several years improving the solvent extraction process for the rare earth elements separation and plans to build a pilot plant in Ontario. The other three companies on Canada’s Natural Resources list are pursuing other no longer solvent projects.
His company, Medallion Resources Ltd., plans to extract rare earth by-products from heavy mineral sand mines in the southeastern United States and considers waste products from the Alberta oil sands as a future source of raw materials. Critical Metals was founded in Namibia and has a varied portfolio of projects in Namibia focused on gold-based metals related to electric vehicles and battery technology such as cobalt, lithium, niobium, tantalum, vanadium and rare earth. In June, the company released a revised resource estimate for the Lofdal Heavy Rare Earth Project, a joint venture with Japan Oil, Gas and Metals National Corporation.
The company also has an ongoing feasibility study for the Songwe Hill Rare Earth Project in Malawi, 51 percent owned by strategic partner Talaxis and funded by a £12 million investment. In addition, the company has engaged several leading experts from the rare earth industry from a broad range of disciplines to advise its rare earth segment, including a technical agreement with Neo Performance Materials and a contract between the Department of Energy and Penn State University to extract rare earth elements from coal.
The CEO said he expects 2020 to be a “turning point” for the company as it works to get its mines up and to run. Canada Rare Earth Corp. is building a supply chain connecting mining operations, rare earth concentrate processes, and extraction and refining facilities with critical international customers. As a result, the market is not divided into dozens of smaller REE companies.
It sounds like the plot of the film Gold, but we’re still learning more about the company’s character. The company is sending some of its production to China for processing, which could be problematic if it has the resources to implement its announced expansion plans.
Investors are siphoning off the shares of five China-based rare-earth mining companies whose shares have surged amid growing concerns that China will cut exports to the US to gain leverage in the trade war. These stocks have doubled this year and are expected to rise as the trade conflict continues. In addition, according to documents obtained by the Financial Post, the United States government is investing millions of dollars in building processing facilities in North America to regurgitate the rare earth metals sector in Canada.
Right now, China’s influence on rare earth is driving up prices, delivering sizeable profits to investors in rare earth companies and driving up the cost of many US products. Indeed, several publicly traded rare-earth elements companies on the TSX Venture are beginning to feel the side effects of China’s REM rhetoric.
According to Natural Resources Canada, rare earth elements (REMs) are 17 elements used in everyday products such as computer memories, DVD batteries, mobile phones and more. Rare earth is the smallest but most essential component of high-tech equipment on earth.
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