RE:Why this stock should be 1% of your portfolio The rare earth optionality is the primary reason why I'm here, full stop! I started building this position in the summer of 2019.
The current value of the Nechalachu REE/HREE deeper resources are in the ballpark of $100 billion.
Solid blend of heavy rare earths, namely dysprosium and terbium.
Rare earth prices are on the move big time with no long term end in sight.
In my opinion, manufacturers who will attempt to substitute rare earths purely due to price do so at great risk, rare earths robustly make technology perform better and dependable. Substitution will likely lead to poorer quality outcomes.
The Nechalachu shallow resources are currently being put into play by Vital Metals, they have recently expanded off take to the Norwegians, recently added an American off take agreement, Vital is also currently constructing a rare earth processing facility in Saskatoon, Canada, next door to Saskatchewan Research Council's developing rare earth facility.
Avalon has built an incredible portfolio of properties where the underlying resources are in critical demand, and prices are in absolute bullishness.
However the market remains blas (apathetic to excitement as a result of excessive and easy indulgence!). But however early it is, the market will eventually need to sober up to this geologically natural order that is headed our way.