It is not an exaggeration to suggest that rare earth metals keep the economy and society running smoothly. They are the primary part of technology, from the most fundamental to the most advanced.
Rare earth metals are becoming more significant in the electronics sector and technological breakthroughs. Electronics such as cellphones, computer memory chips, cameras, and e-readers require elements such as lanthanum (La), Cerium (Ce), praseodymium (Pr), and neodymium (Nd). Rare earth metals are also used in night-vision goggles, precision-guided weaponry, and stealth technologies, among other military and defence uses. Despite their profusion, rare earth metals are valued since they are difficult to obtain and have a high demand.
7 Canadian Rare Earth Metal Stocks You Should Invest In
Here are seven stocks for Canadian investors looking to jump the gun on rare earth metal stocks with promising prospects.
Energy Fuels Inc. (TSX:EFR)
Energy Fuels Inc is the United States’ largest uranium producer, with more production capacity and uranium resources than any other company. The company also produces vanadium. Energy Fuels is headquartered in Colorado and operates three major uranium production facilities in the United States: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas.
The White Mesa Mill, which produces 8 million pounds of U3O8 per year, is the sole conventional uranium mill in the United States. Nichols Ranch has a licensed capacity of 2 million pounds of U3O8 per year and is currently in operation. At the moment, Alta Mesa is on standby.
The Company had a strong balance sheet as of December 31, 2021, with $143.2 million in working capital, $113.0 million in cash and cash equivalents, $30.8 million in inventories, and no short-term (or long-term) debt. Trading at $12.79 as of March 24, 2022 (4:12 PM), it is an excellent stock to invest in.
Canada Rare Earth Corp. (TSXV:LL)
Canada Rare Earth Corp is a development stage firm situated in Canada. From its primary mandate of acquiring and researching mineral property holdings, the company has developed an integrated business within the rare earth market. The sale of rare earth oxides and rare earth deposits/concentrates is the only reported segment. Asia accounts for the majority of the company’s sales.
Canada Rare Earth Corp. is striving hard to accomplish the pressing needs of international companies and governments for a consistent and dependable supply of rare earth metals. As a result, the Company is increasing its mineral supplier base with business operations and developmental projects in eight countries as of February 23, 2022.
Trading at $0.065 as of March 24, 2022 (4:19 PM), analysts predict that this stock will take off soon. The current market capitalization for this company is 13,360,850.
Avalon Advanced Materials Inc. (TSX:AVL)
Mineral exploration and development company Avalon Advanced Materials Inc. focuses on rare metals and minerals, such as lithium, tantalum, niobium, cesium, indium, gallium, germanium, rare earth elements, yttrium, and zirconium, and operates mainly in Canada. The Nechalacho Rare Earth Elements Project at Thor Lake, the Separation Rapids Lithium Project near Kenora, Ontario, and the East Kemptville Tin-Indium Project in Yarmouth, Nova Scotia, are the company’s current priorities.
On December 21, 2021, Avalon Advanced Materials Inc. announced the closing of a non-brokered private placement comprising 9,099,994 flow-through units at $0.12 per unit and 2,920,000 non-flow-through units at $0.10 per unit for a total of $1,384,000 in gross proceeds.
Trading at $0.175 as of March 24, 2022 (4:28 PM), the company holds a market capitalization of 67,819,817. Furthermore, the trading volume of 2,853,853 speaks for the sustainability of these stocks.
Ucore Rare Metals Inc. (TSXV:UCU)
Ucore Rare Metals Inc is focused on developing REE resources and commercializing Innovation Metals Corp.’s (its wholly-owned subsidiary) RapidSX essential metals separation technology for the mining/metals extraction industry while adhering to ESG principles. The company provides separation and mining services. In addition, the company is expanding its Bokan Mountain HREE resource, which is located near Ketchikan.
Ucore Rare Metals Inc. has a market capitalization of 43,684,876. Trading at $0.89 as of March 24, 2022 (4:38 PM), analysts predict that this stock has bright future prospects. Despite being a penny stock to buy, the current development in the rare earth metals sector will surely act as a catalyst for this company.
Appia Rare Earths & Uranium Corp. (CSE:API)
Appia is a publicly-traded firm in Canada’s rare earth element and uranium sectors. On its Otherside, Loranger, North Wollaston, and Eastside assets, the Company is now concentrating on identifying high-grade key rare earth elements and gallium and exploring high-grade uranium in the rich Athabasca Basin.
In Saskatchewan, the Company has surface exploration rights for 105,026 hectares (259,525 acres). In the Elliot Lake Camp, Ontario, the Company owns a 100% interest in 12,545 hectares (31,000 acres) containing rare earth elements and uranium resources spread across five mineralized zones.
Trading at $0.64 as of March 24, 2022 (4:47 PM), Appia is a booming stock. It is undoubtedly a profitable investment with a market capitalization of 49,980,105 and a healthy trading volume of 305,487.
Leading Edge Materials Corp. (TSXV:LEM)
Leading Edge Materials is a public business based in Canada working to build a portfolio of important raw material projects in the European Union. The European Union defines critical raw materials as such based on their economic importance and supply risk, and they are directly linked to high-growth technologies like batteries for electromobility and energy storage, as well as permanent magnets for electric motors and wind power, which underpin the green energy transition to climate neutrality. You could consider it helpful for electric vehicle stocks Canada has.
Trading at $0.62 as of March 24, 2022 (4:53 PM), this rare earth stock has the best future prospects among its contemporaries. A market capitalization of 94,020,210 and a trading volume of 87,519 cement its persona as a booming stock.
Neo Performance Materials Inc. (TSX:NEO)
Neo Performance Materials Inc specializes in rare earth and rare metal-based multifunctional materials discovery, processing, and manufacture. Magnequench, Chemicals & Oxides, Rare Metals, and Corporate are the company’s operating segments.
Magnequench creates magnetic powders for totally dense neodymium-iron-boron permanent magnets that are bonded and hot-deformed. In addition, chemicals & Oxides produces and distributes a diverse range of innovative industrial materials. Tantalum, niobium, hafnium, rhenium, gallium, and indium are among the specialty metals and compounds produced by the Rare Metals section.
Neo has facilities in Asia, North America, Europe, and other parts of the world. The company has 1,805 employees and has a market capitalization of 667,590,012. Trading at $16.41 as of March 24, 2022 (4:07 PM), it has immense growth potential, making it the best time to invest in this stock.
Why You Should Invest in Rare Earth Metal Stocks in Canada
Demand for Rare Earth Metals is expected to “skyrocket by 2,600 percent over the next eight years,” as per Palisade Research. Following this 2017 MIT research statement, the company emphasized the growing market and monopolized Chinese supply.
Today we know that the rare earth industry is a critical component of our economy. If it weren’t for REMs, none of today’s advanced technologies would be feasible. Because we are in the midst of the most significant technological revolution in history, now is the optimum time to invest in the rare earth stock market to assure future profits.
The Bottom Line
Rare earth metal stocks, like the best Canadian cobalt stocks, according to analysts, will become more profitable as we go through improved technologies. The implementation of REMs in a wide range of applications, from magnet manufacturing to catalyst synthesis, broadens their scope and increases their value. They aren’t valuable today, but they will be the gold and platinum of the future.
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Best Rare Earth Metals Stocks Canada
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 have 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.
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, etc. Rare earth is the smallest but most essential component of high-tech equipment on earth.