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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


28. October 2020 | 09:38 CET

BYD, Defense Metals, VW - the next boom after hydrogen!

  • Rare Earth Elements
Photo credits: pixabay.com

Tesla wants to break the sound barrier of one million vehicles with delivery in 2021. The biggest competitor from China, BYD, has at least as ambitious goals and is rushing from record to record with its new model, Han. Even German car manufacturers like VW have awoken from their deep sleep and now find electric cars sexy. The production of rechargeable batteries is increasing rapidly, but so is the demand for the necessary materials. Surpluses in demand, supply bottlenecks, and exploding prices are threatening.

time to read: 2 minutes by Stefan Feulner
ISIN: CA2446331035 , CNE100000296 , DE0007664039


 

Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Demand not to cover

The situation is dramatic with the scarcity of "rare earth". Permanent magnets for electric motors are produced based on rare earth metals. In ten years, the experts at Adamas Intelligence predict that the demand for rare earth oxides for use in magnets will increase from the current USD 2.98 billion to USD 15.65 billion. The analysts of Adamas Intelligence see by far the most significant demand for magnetic rare earth such as neodymium, praseodymium, dysprosium, and terbium.

Almost 80% of rare earth metals are produced in China. The trade conflict between the USA and China is still ongoing and is not likely to calm down after the possible re-election of Donald Trump. As early as 2019, the Middle Kingdom threatened to stop exporting rare earth metals to the USA. Alternatives ex-China are therefore needed here as quickly as possible.

Current production capacities too low

The short-term view of a period of three to five years is incredibly critical. The reason being, the demand for rare earth is exploding to such an extent that production capacities, which are already insufficient today, are likely to collapse. Enormous investments in the mining industry are needed here to increase supply.

Well-positioned

The Canadian mineral exploration Company Defense Metals can already point to tangible successes in this area. Founded in 2016, the Company focuses on the acquisition of mineral deposits containing metals and elements used in the production of renewable energy technologies, such as rare earth magnets.

The main focus is on the Wicheeda project in the province of British Columbia. According to the Company, the mineral resources are 4.9 million tonnes at an average grade of 3.02% LREO (light rare earth metals), and inferred mineral resources are 12.1 million tonnes at an average grade of 2.90% LREO.

Unique positioning

About four weeks ago, the Company received the final report of the study, which was prepared by SGS, the world's leading inspection, verification, testing, and certification Company. Craig Taylor, CEO of Defense Metals commented: "The success of the flotation pilot and 1,200 kilograms of high-grade REE concentrate produced places Defense Metals and the Wicheeda REE deposit among rare company and opens the door to future hydrometallurgical pilot trials at SGS, with the ultimate goal of producing a Nd-Pr oxide product stream."

Defense Metals is at the beginning of a success story. At the moment the market capitalization is a mere EUR 6.00 million. An entry into the stock would be a bet on the future. However, if you see the exponentially growing demand for electric vehicles, you can't ignore the producers of the raw materials.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

19. February 2021 | 10:25 CET | by André Will-Laudien

Defense Metals, BYD, NEL, Plug Power - Rare earths, who is the fastest?

  • Rare Earth Elements

Scarcity is the issue in 2021! Western governments have completely miscalculated regarding technological progress. They are now being driven by the industry; decisions that should have been made 5 years ago are now being followed abruptly. Since Battery Day in mid-September 2020, it has been clear that a technology giant like Tesla, led by Elon Musk, will enter large-scale battery mass production. What is missing is the complete closing of ranks between battery and car manufacturers so that the produced and expensively developed high-performance batteries are also installed in e-cars through corresponding demand. In coordination rounds between the automotive industry and the EU, the decision has probably already been made: E-mobility will come, and it will come in the big version...!

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26. January 2021 | 08:05 CET | by Carsten Mainitz

Lynas Rare Earths, Defense Metals, Arafura Resources - Rare Earths: still in time to get in before the boom!

  • Rare Earth Elements

China has dominated the rare earths market for a long time. A supply shortage in the People's Republic and a substantial increase in demand can lead to a massive price increase of the commodity group at any time. These price increases are then often reflected in the share price of relevant players. Rare earth metals are in demand in a wide range of industries and to close the emerging supply gap the production of rare earth metals must be increased outside of China. We present three opportunity stocks that will benefit from industry trends and scarcity prices as producers or prospective producers.

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18. January 2021 | 09:48 CET | by Nico Popp

BYD, Defense Metals, Nornickel: Still investing in electromobility?

  • Rare Earth Elements

Electromobility is a trend that is making waves on the stock market: Car manufacturers such as Tesla or BYD are benefiting from the rising demand and the vision of the future, but so are commodity companies. The reason: If you want to drive electric cars with low emissions, you need more raw materials for energy storage and motors than for classic combustion engines. Typical candidates are copper, cobalt, or lithium. Rare earth metals play a unique role. So far, most of them have come from China - and some are mined under dubious conditions. But anyone serious about sustainability must look at the entire value chain when it comes to electromobility and pay attention to raw materials from producers with a good ESG profile. For raw material companies outside China, this is an opportunity.

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