A well-meaning commenter made some misinformed comments. Let's help them with some added context!
"Issue is its a long way off production. PFS means it is several years away. Lots of capital raises. Rare earth mines are expensive in terms of CAPEX."
This isn't a rare earth metal. This is a transition metal, as is vanadium and tantalum, in the same period (V) ("d-block"). The only transition metals considered rare earths like the lanthanoids are group III (Scandium, Yttrium), [Lutetium and Lawrencium are debatable].
"Commodity is relatively unknown and not covered by major banks. There are no producer listed stocks in this sector. Stock has a habit of pumping large and dumping all the gains away. id be cautious."
There are 80 non-radioactive elements and 251 stable isotopes. How many can you remember past iodine, from where group 6 starts? Most chemists don't use everything on the periodic table. I never knew the exact atomic weight of sodium, but potassium was stuck in my head.
Why banks? Our retail banks don't specialise in trading. Merchant banks maybe, but several brokers have reports on WA1 like Bell Potter and Argonaut.
The reason why there are no producer-listed stocks in this sector is that WA1 is going to be one of three/four global producers on a 1 in 70 year find, with 1st/2nd levels of output and purity. How can a stock "pump" and "dump" itself? WA1 Corporate Treasury is not arbitraging here. Investment banks are taking positions or delta punting.
"Broadly, rare earth sector is negative. LYC, ILU, ARU, the whole space has negative 12 month returns, similar to lithium."So what?
The trend for Niobium in USD/kg is up, moreso in AUD.
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