Hi all received interesting email from mines and money
Dear Reader,
Are rare earth minerals about to stage a spectacular comeback?
The 17 materials known as rare earth elements (REE) are essential for the modern-day world.
Rare earths are used to produce permanent magnets, advanced military equipment, GPS systems, satellite imaging, night-vision goggles, and consumer products like smartphones and flat-screen televisions.
But they are also essential to high-performance lithium-ion batteries.
And, as you’ll see in this new stock report, it’s this purpose that could send the prices of certain rare earth minerals — and the tiny stocks mining them — into the stratosphere over the next two years.
China has controlled more than 90% of the global rare earth supply for years.
The supply chain worked smoothly until early 2011, when the Japanese navy detained a Chinese fishing boat as part of a territorial dispute.
China promptly choked off REE sales to Japan and imposed worldwide supply quotas.
The price of rare earths soared 4,000% almost overnight…
When the Chinese cut supply in 2011, the US and Japan pledged billions of dollars’ worth of contracts to major Western rare earths miners. Lynas Corporation Ltd [ASX:LYC] — Australia’s largest rare-earths producer — led the charge.
Lynas’ share price skyrocketed by roughly 2,600% from the 2009 low of 10 cents per share to the 2011 high of $2.70.
Lynas wasn’t alone with its massive gains. Many other rare-earths players made shareholders who got into the story early — and out in time — lots of money.
Unfortunately, most punters got emotionally sucked into the ‘bubble’ after it was well and truly inflated. In 2011, China ended up relaxing its rare earths ban, sending most of the rare-earth players bankrupt, or to fresh lows.
Today, rare earth prices have fallen by more than 80–90% since the 2011 peak.
That, reader, is your opportunity…
And you’ll see in this new research report, there is evidence to suggest a massive new supply crunch in rare earths is coming.
This time, it’s going to be driven by two things…
First, the massive build-out in lithium-ion battery mega-factories around the world.
And second, a Chinese crackdown on polluting ‘cowboy’ rare-earth miners.
This, I believe, is going to hit three rare earths in particular — dysprosium, neodymium, and terbium — which are all key ingredients for lithium-ion batteries.
But don’t take my word for it. The research is all here.
And, if you find it compelling, I believe I’ve found…
The best strategic rare earths buy on the ASX right now
I can’t divulge much about this rare-earth play here without letting the cat out of the bag.
Here’s what I CAN tell you…
At the height of the last rare-earths boom, this stock traded at 57 cents.
Last year, it hit a low of just 5.7 cents.
I judge this as one of the most undervalued rare-earth plays on the planet right now.
It’s focused on producing the heavy rare-earth element dysprosium.
Its Managing Director said on 2 February that the company is racing day and night to bring its first test project online…to meet soaring demand from the electric-vehicle sector.
In early April, this company inked its first offtake deal with a massive Chinese corporation.
This is a HUGE development.
But it was hardly reported. And the share price barely budged.
The time to move on this company is RIGHT NOW.
It’s mere days away from making a final go-ahead decision on its dysprosium project.
That decision was supposed to be made in the first quarter.
If it’s not made then, I’d say it will almost certainly be made public next month, by 30 May. You’ll want to already be a shareholder when that happens.
The fact that it already has a Chinese buyer for 100% of its product before it’s even mined makes that go-ahead highly likely.
That will make this virtually unknown Aussie company one of the only non-Chinese producers of dysprosium in the world.
But they are not producers yet.
This is still early stage.
That’s why the shares are so cheap.
But when the bubble takes off, I think this company will be the first on the ASX to get hyped.
It has a solid balance sheet, with $15 million in the bank and zero debt.
Most importantly…
It’s ALREADY in advanced negotiations with several potential offtake partners to sell its dysprosium. It should have some contracts locked down by the end of May.
In summary: This stock could be on the verge of a massive breakout.
You could see it trading back up at 57 cents by the end of next year.
To learn all about it, click here.
Regards,
Jason Stevenson,
Editor, Markets & Money
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All content is © 2005 – 2017 Port Phillip Publishing Pty Ltd All Rights ReservedPort Phillip Publishing Pty Ltd holds an Australian Financial Services Licence: 323 988.ACN: 117 765 009 ABN: 33 117 765 009All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you've invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Any potential gains in this letter do not include taxes, brokerage commissions, or associated fees. Please seek independent financial advice regarding your particular situation. Investme nts in foreign companies involve risk and may not be suitable for all investors. Specifically, changes in the rates of exchange between currencies may cause a divergence between your nominal gain and your currency-converted gain, making it possible to lose money once your total return is adjusted for currency.To remove your name from Markets & Money and associated external offers sent from Markets & Money, click here. To cancel by email, write us at: [email protected]
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