One of the reasons why the shareprice of so many ASX REE stocks are down has nothing to do with their BOD. Many have secured FUNDING from various sources but are still down. Check out the following article.
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https://www.mining.com/forrests-wyloo-metals-casts-doubt-over-future-of-aussie-rare-earths-hopeful/Rare earths still depressed“So yes, we do have a favorable outlook for rare earths into next year.”Canaccord Genuity head of research Reg Spencer told the Noosa Mining Investor Conference in Queensland this week that rare earths had been treated harshly by investors. “Mainly because they seem to be bandied in the same bucket as lithium, which is suffering from the negative EV narrative,” he said.
“But you can’t deny that rare earths have been in what would otherwise be described as a bear market for almost two years now, and a lot of that has been driven more so by increases in domestic Chinese production quotas, rather than slowing demand.”
Spencer said Chinese prices had rallied 20% off recent lows due to supply side issues in China and Myanmar.
“In the meantime, in the longer term, the high capital costs and technical challenges facing greenfield development still haven’t changed and we think that the supply-demand balance for rare earths is far more favourable than that of lithium,” he said.
Following the US election last week, Citi warned that tariffs on Chinese rare earths could weaken demand and increase substitution risk. However, the bank suggested Donald Trump’s proposed 60% universal tariff was more likely to be a bargaining tool than an immediate threat.
“Our economists think a more realistic assumption would be a phased implantation with an effective rate closer to 15%,” Citi analysts said. Adjustment in magnet and RE metal supply chains would be challenging, if not nearly impossible, given China’s downstream manufacturing dominance of over 90%.
“Therefore, we believe factoring in a significant tariff impact within a 1-2-year timeframe seems unrealistic as any tariff would likely be implemented gradually and with a more moderate impact.”
Meanwhile, Spencer suggested rare earths could be a Trump trade opportunity. “If there is a re-ignition of US-China trade tensions, there could be a retaliation by the Chinese by weaponizing their control of the rare earth market,” Spencer said.
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