Followers of this thread may have seen my inclusion of REE as a Featured stock alongside Gold Juniors.
The reason I am separately profiling this stock is because at this point I can see 4 key compelling reasons to invest in REE.
Its valuation of $25m is IMO cheap for the reasons expressed.
> Reason No.1 A Beneficiary of the Electric Vehicle (EV) Boom
REE is first and foremost a rare earth company.
RareX is focused on the production of LREE’s Neodymium-Praseodymium (NdPr) which are critical to the manufacture of Neodymium-Iron-Boron (NdFeB) Rare Earth Permanent Magnets (REPM) which contain approximately 32% NdPr.
Whatever the type of Electric Vehicle (EV) (BEV, HEV PHEV) or the power source (Li Batteries, H Fuel Cells etc) they all use REPM motors. • Each EV requires approximately 1kg to 2kg of REPM which is used in rare earth magnets forming part of an EVs electric motors.
EVs expected to grow from 3m to 35m by 2030.
In other words, REE stands to grow with the huge EV market phenomenon that is unfolding (hence reason why Tesla is a superstar stock).
> Reason No.2 Australia stands as a beneficiary of the broken US-China relations as preferred supplier of Rare Earths
As the Market Herald reported:
A new Minerals Bill proposed by the U.S. could see a bump in Australia’s rare earth exports as the United States looks to reduce its reliance on China. Given the souring relationship between the U.S. and China, it’s likely America will turn to an allied country with similar interests and a similarly-souring relationship with China for rare earth stockpiles.
Several ASX-listed companies are working to ramp up Australia's rare earths production, backed by the Federal Government's 'Critical Minerals' strategy
Looking towards small-cap businesses, RareX (REE) is working hard to develop a number of rare earths deposits across Australia.
The furthest-along of these, the Cummins Range Rare Earths Project, sits in the East Kimberly region of Western Australia. Importantly, this is one of only two known rare earths deposits bearing carbonatites in Australia.
The project has an inferred resource of 13 million tonnes at 1.13 per cent total rare earth oxides (TREO) and remains open at depth and along strike.
With a $26.36 million market cap and shares worth around seven cents each, RareX is hoping to support the production and development of REEs outside of China.
> Reason No.3 Several Free Carried Gold Projects in NSW
Including a 35% JV with Kincora Copper (Canadian) at the Trundle Project
> Reason No.4 Tolga Kumova as cornerstone investor
