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Jerre Foo, Corporate Development Executive, Silkroad Nickel

Jerre Foo
Corporate Development Executive | Silkroad Nickel
50 Armenian Street #03-04, 179938 Singapore (SGP)

enquiries@silkroadnickel.com

+65 6327 8971

Silkroad Nickel: 'The course is set for dynamic profit growth.'


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


20. December 2019 | 11:11 CET

Lynas Corporation, Mkango, Ucore Rare Metals - who will benefit most from the U.S. Army?

  • Rare Earth Elements
Photo credits: pixabay.com

The market for rare earth elements is dominated by the People's Republic of China. Worldwide production of rare earths in 2018 was around 170,000 tonnes, of which 120,000 tonnes came from China. This shows how much the global industries have become dependent on a good relationship with China. In 2010, following a diplomatic dispute with Japan, the People's Republic restricted exports, which caused prices for niche metals to skyrocket.

time to read: 2 minutes by Mario Hose


 

Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author


Political Cooperation with China

Rare earths are important raw materials for mobility with electric drive motors, the generation of wind energy and modern communication with smartphones. Of course, the use of rare earths can be listed by a multitude of other applications, but the current mainstream topics make it clear how much the success of these projects depends on political cooperation with China. The supplier issue is particularly critical in connection with the national security.

U.S. Army has financial leeway

The trade dispute between China and the USA is about many issues, but also about rare earths. With a military budget of over USD 600 billion per year, the US understandably has a problem with remaining dependent on the emerging China. In this context, it was recently announced that the US Department of Defense is looking for ways to secure procurement in North America. Given annual military spending, building a pilot plant costing up to USD 20 million or completing a plant costing over USD 100 million is certainly not a problem. The U.S. Army wide financial latitude for national defense.

Development between the major powers

This development between the two major powers will also be exciting for companies that deal with rare earths on a daily basis. Lynas Corporation from Australia is one of the already established companies in the scene. The company currently has a market capitalization of just over EUR 1 billion. Ucore Rare Metals is a small player with a market capitalization of around EUR 36 million. The Canadian company with projects in Alaska may benefit from an initiative of the U.S. Army for obvious reasons.

Rare earths in Malawi

The developments around the Canadian company Mkango will be very interesting in the coming days and weeks. The company has several rare earth projects in Malawi, one of which is called Songwe Hill, and a bankable feasibility study is currently being conducted for this project in partnership with Talaxis. Talaxis will bear the cost of this feasibility study and subsequently, depending on the outcome of the study, the project will be brought into production.

Partnership with potential

On December 9, 2019, Talaxis' owner holding company, Noble Group Holdings Limited, signed a Memorandum of Understanding with Chinalco Guangxi Nonferrous Rare Earth Development Co, Ltd for a potential supply of 42,000 tons of rare earths. This volume corresponds to approximately 25% of the world's annual production in 2018. The press release also explicitly mentioned Mkango's Songwe Hill Project. As of September 30, 2019, Mkango had over USD 10 million in cash on its balance sheet and its market capitalization is currently EUR 12 million.


Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

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.


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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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