Developing One of the Largest Rare Earth Deposits in Canada


Share Price... .79
Share Out… 134.1M
Market Cap… $105 million
Premium ‘Nov. 2010’ @ .55 + .24 / 44%

The world has gone rare earth crazy.

Since the new year, prices for rare earths have continued their parabolic moves as China ramps down on export quotas and imposes further restrictions. Strict supply conditions are foreseen to continue until at least 2015 when the vast majority of the planned projects can come into production. In the past several months prices for most rare earths have doubled or in some cases even tripled. The light rare earths continue to lead the way making the bulk of the price increases. Heavy rare earths are much rarer than the lights and will continue to be strategic until there is a steady supply, but the light rare earths are where the bulk of the future demand on a tonnage basis will come from. Neodymium and lanthanum make up a significant portion of the rare earths required for the manufacturing of magnets and other components which are used in the production of hybrid and electric vehicles. Since the summer of 2010 when China first started to impose quotas on rare earth exports, the light rare earth neodymium has gone from about $50/kg to $250/kg. Even the most abundant light rare earths, cerium and lanthanum have seen big price increases going from about $20/kg early last summer to nearly the $140 per kg value they command at current prices, less than a year later.


Beat the Market Stock Picks: Commerce Resources CCE-V