Spotlight on American Rare Earths, page-766

it’s earnings season so there will be more free capital by September when all have gone ex divi. After the summer many portfolios will re position as this time next year the dividend season will not be as strong if there are recessionary pressures as capital will be held within the firm not distributed then Re invested at the bottom of the business cycle.

investors may consider some growth stories and investing for next 5 years towards REE.

it’s a bit like having £1m to invest in a current account if it pays 5% a year and you only lose 5% to inflation you are happy enough (Long term return assumptions are 5%). If that same account goes to 1% then you will have to look elsewhere and the next growth story is rate earths and ESG based products.

I think this year and next will test shareholders. I can actually see the share price bonus for leadership at a reasonable level as there are market head winds for next 12 months, maybe longer. The bonus effectively says, prove halleck and you will get paid. When that happens the firm expects the price to reflect that kind of level. When we are looking to kick on the share incentives will be far more stretched and the real money incentives starts to flow because board will have to be corporately defensive and they need to be incentivised to say no to takeovers.

For the here and now we are back to where we are with la Paz mid point, promising but not proved. La Paz still no pea as well…. Suspect that at int high rates and normal mining it would be a tougher sell.There are a few on here that have held for years and years and will see it through for those the share price fluctuations tend to even out of time.

There is no advice in the above, but plenty of high school economics. Your money, your choice.