Friday, January 7, 2011

5 Rare earth Stocks in Focus

Rare Element Resources Ltd. (AMEX: REE) has one of the largest widely known rare-earth deposits in North America. The company has significant stake of high grade rare-earth elements (REE) in Bear Lodge project and Sundance project. According to NI 43-101, REE deposits contain 17.5 million tons averaging 3.46% rare-earth oxides at 1.5 % REO cut off grade, and at 4% REO cut off grade the deposits contain 4.4 million tons averaging 6.65% REO. The stock dropped 2.89% to $16.26 after it touching its 52-week high of $17.62. The company's shares trade on daily average daily volume of 4.52 million shares. Molycorp Inc. (NYSE:MCP) is a rare earth oxide producer and owns most fully developed rare earth projects in the Western hemisphere. The company's principal asset is the Mountain Pass rare earth mine which has reserves of 2.21 billion pounds of ROE, with an average ore grade of 8.24% using a cut-off grade of 5%. The company has an enterprise value of $3.39 billion and market capitalization of $4.11 billion. The company's shares have a 52-week low of $12.10 and a 52-week high of $55.22. The company recently announced a JV with Japan-based Hitachi Metals or the production of rare earth alloys and magnets in the U.S. Avalon Rare Metals Inc. (AMEX:AVL) is a Canada-based mineral exploration and development company, which focuses on rare metals and minerals. The company's flagship project is Nechalacho Rare Earth Element Deposit located in the Northwest Territories, Canada. The company has a 100% ownership in the project. It recently listed on the AMEX. China Shen Zhou Mining & Resources Inc. (AMEX:SHZ) is a China-based firm, which focuses on exploration, development, mining and processing of fluorite, zinc, lead, copper. The company works through its China based subsidiaries including  American Federal Mining Group, Inc. (AFMG), Inner Mongolia Xiangzhen Mining Group Co., Ltd. (Xiangzhen Mining) and Inner Mongolia Wulatehouqi Qianzhen Ore Processing Co., Ltd. LYNAS Corporation (PINK: LYSCF) is a rare earth commodity company. The Company is engaged in the creation of fully integrated source of Rare Earths. The Company is the owner Mount Weld in Western Australia, which is the richest deposit of Rare Earths in the world. The company scheduled the production of the minerals in the late 2011. This corporate profile is provided for information purposes only and should not be used as the basis for any investment decision. We are neither licensed nor qualified to provide investment advice. We were not paid, nor do we hold a position in these stocks. We reserve the right to buy or sell REE, MCP, AVL, SHZ and LYSCF at any time after this post.
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