BtG's REE companies thread.

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Bring the Gold
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BtG's REE companies thread.

Well I'm not sure where to place this so "Other Precious Metals" sounds the closest. I have been out of the REE game since August and just bought back in today.

Obviously I have a vested interest in these stocks, and discussion found within this thread does not constitute for investment advice. Talk to your broker about risks. Any purchase you make is your own decision and neither I, nor this forum are responsible for your investment decisions.

I will post my buys in the next post. For now here are some basics about REE's:

(This is a repost of an introduction to REE's some information may be out of date)
 
Welcome to the Rare Earth Companies thread! I look forward to your contributions. Be careful the REE bug can bite you at any time and this thread has a high infection rate! :D
 
First off some info on the Rare Earth Elements:
 
Quote:

General definition
REE are non-toxic elements found in the Earth’s crust, in the same way as tin and nickel. However, their applications are such that they are currently enjoying increasing popularity.

They are mainly found in the environmental and armaments industries, and used in applications that help reduce energy consumption and the use of fossil fuels.

Description
The U.S. Geological Survey lists 16 REE, comprising 15 lanthanides, ranging from lanthanum (57) to lutetium (71), and the metal yttrium. These elements have similar physical and chemical properties.

REE can be divided into three groups:
Light rare earth elements (LREE), which comprise lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm). LREE, which are more common and have less value, make up 98-99 % of the resource.
Heavy rare earth elements (HREE), which include europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu). The latter are more rare and therefore have higher value.
Yttrium, which is often found with HREE.
Here is an example of the difference in value between LREE and HREE. Europium (HREE) is currently worth US $450/kg, whereas cerium sells at US $4.50/kg. This explains why a mining property containing HREE has very significant value in the current situation

 
You will note that the Rare Earths are the elements 57 - 71 + Yttrium, some include Scandium [Sc21] as it shares some chemical properties with the Lathanide family of elements:
 
 
I might get a google spreadsheet going at some point with TREO and HREE %, tonnage of ore ect. If someone knows how to do that and wants to that would be great. The idea here is to have a REE themed thread ala Will's Miner Due Dilligence thread. I hope other REE bugs will chime in with any info and opinions they have.
 
FWIW, now is a good time to accumulate good REE companies as there is a lull and pullback currently(as of 10/07/10) 
 
 
 
Hat tip to bigbeans for this article. If the Council on Foreign Relations is making a big deal about it, you can be sure that REE's will be developed:
 
(I am unable to find the link on Foreign Policy anymore not sure what happened. Interestingly I mostly find REE negative pieces on FP since November. REE's have since climbed to a huge degree. FP if you are not aware is the mouthpiece of the Council on Foreign Relations)
 
Quote:
For years, analysts have been issuing dire warnings about this situation, casting China's near-total monopoly and its steadily shrinking export quotas as a mortal threat to U.S. national security and global commerce. In 2005 testimony before the U.S. Congress, Frank Gaffney of the Center for Security Policy argued that China's interest in rare-earth elements "falls into a pattern of ... activity around the globe that is clearly deliberate, well thought out, and ominous in its implications." A more recent report written by a military researcher at Fort Leavenworth, Kansas, urges the United States to stockpile the most important rare-earth elements and make studying the minerals a national strategic priority.
 
Here are some videos by the world's leading expert on REE's telling you why only the HREE deposits matter. Edit: this may not be as true now due to Chinese export taxes on LREE:
 
 
 
You may also want to review the RESTART act relating to the government helping to fund a complete REE supply chain from mine to ready to use industrial quantities of processed REE's: http://www.opencongress.org/bill/111-h4866/show
 
Quote:
Directs the Secretaries of Commerce, of the Interior, and of State to report to the domestic rare earth industry about mechanisms for obtaining government loan guarantees to reestablish a domestic rare earth supply chain. Directs the Secretaries of Defense and of Energy to issue guidance for the industry related to obtaining such loan guarantees. Expresses the sense of Congress regarding a prioritization of Defense Production Act projects with respect to the domestic rare earth supply chain.
Edited by admin on 11/08/2014 - 06:11
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Here's an interesting graphic
Here's an interesting graphic showing the percentage changes in price one group of people are predicting. Given the recent moves in price I think these are way low. The LREE's dropping I'm assuming is due to production kicking in with Lynas, Molycorp etc. The chart is price prediction in changes for the year 2014.  http://www.eenews.net/public/Landletter/2010/07/22/1
 
 
 
A note about pinksheets (stocks ending in .OB or .PK). Pinksheets comes with risk from the low volume. With low volume comes volatility and they are often illiquid. You can buy pretty much when you want, but if you want out you really have to wait for huge volume days. For example today's(10/18/10) volume in Medallion was massive so it would be easy to sell. 
 
My strategy with pinksheets is to buy low and then sell into the huge volume spike days. Now some pinksheets haven't had too many big volume days.
 
So with pinksheets the biggest risk is liquidity and being stuck in a position. So it requires far more patience than NYSE listed stocks like REE, MCP etc.
 
Does that make sense? Also pinksheets have different reporting requirements so in the past there have been shell companies sold that have no assets due to lower reporting requirements. All the pinksheets I've mentioned have their main listing on the TSX or other Canadian listings so I don't worry about those suddenly disappearing.
 
One more thing [b][u]with Pinksheets you should ALWAYS do limit orders whether selling or buying.[/u][/b] If you do a market buy and the volume is very light you could pay outrageous prices to buy or sell to someone who has a stink bid in (ie way lower than current price).
 
Some recommend that you buy a basket of REE stocks say 10% of REE money in 10 stocks and then periodically re-balance your portfolio to create your own REE ETF. This is not a bad way to go as this sector is [i][b]very [/b][/i]volatile and there is also quite a bit of incorrect information out there which compounds the difficulty in the research process.
 
Here is a somewhat out of date graphic showing some of the top REE stocks, their valuations and where they are in terms of production:
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Bring the Gold...

Congratulations...on starting your REEs thread here!...You are a "wealth of knowledge"...& my friend...all I have to say is...

Bag Of Gold

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Ok with some of that beginner

Ok with some of that beginner info out of the way I will tell you what I'm up to at the moment. Right now I'm betting we will see some big FED action next week. This isn't a hope, just a logical conclusion based on a variety of things. It's still possible the FED disappoints with a weak Operation Twist 2. If that happens the market will likely tank. I think however, that QE3 between 1 to 2 trillion by another name and through the back door is likely. Thus I have gotten back into REE's not as heavy as I was last spring and I have some FAZ and DOG as hedging along with a HEARTY helping of PM positions of various sorts.

So here is what I have done today:

Bought:

1500 QRM at $3.96 I sold in August at between $4.31 and $4.55
1500 AVL at $4.03 I sold in August at $4.67
1500 TASXF at $3.31 I sold in August between $3.52 and $3.81

I still think downside is a possibility, but I wanted to get back into REE's at least a bit. We will see what happens!

I also sold my VXX position. Will hold FAZ for a bit as a hedge and because it's under water. I'm up $1500 cashed out on FAZ and would rather not take a $500 loss. I'd like to come out ahead on that trade. VXX I've made around $1200 cashed out.

Bought 2000 LYSDY between $1.52 (small odd lot of 205 this am) and $1.60 (the remaining 1795). I'm looking to buy more below $1.60.

I also have in bids for MTCEF and Commerce.

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By the way I want to be

By the way I want to be crystal clear on this, Goldie Hawn you are NOT welcome here unless you can somehow muster up the ability to show some respect starting with an apology for your past behavior. This is MY REE thread, anyone can contribute, but I will not stand for people to be disrespectful to one another and yes that means I will alert Moderators early and often. I left that other site so you can have it, stay the heck away from this thread. 

If you come to this site GH feel free to make your own thread and I shan't go in it, but stay away from this one unless you plan on being respectful.

To everyone else you are very welcome to be here and I consider this thread to be yours as well as long as you are respectful to others. Best of luck to everyone!

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Hmm I can't seem to edit the

Hmm I can't seem to edit the Original Post. Can anyone help me out here? Some stuff didn't post correctly and AREM is a junk stock I haven't supported in ages I had meant to delete that.

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Bring the Gold...

Bring the Gold wrote:

Hmm I can't seem to edit the Original Post. Can anyone help me out here? Some stuff didn't post correctly and AREM is a junk stock I haven't supported in ages I had meant to delete that.

PM ScottJ...& he will edit it for you!...He edits the Original Post for me...all the time!!!...

Bag Of Gold

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BagOfGold wrote: Bring the

BagOfGold wrote:

Bring the Gold wrote:

Hmm I can't seem to edit the Original Post. Can anyone help me out here? Some stuff didn't post correctly and AREM is a junk stock I haven't supported in ages I had meant to delete that.

PM ScottJ...& he will edit it for you!...He edits the Original Post for me...all the time!!!...

Bag Of Gold

Thanks BOG! So good to see you! Now if I can just get Stormdancer to reply to me... :(

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Bring the Gold...

I just PMed Day Star & stormdancer...over at Kitco to make them aware of your REEs thread here!...In fact...I went further than that...I also posted on the moderator's (Arum) REE thread...& my thread at Kitco...that you & your REEs thread...may be found here!!!...

Happy times are here again...My Greatest Friend Ever!!!...

Bag Of Gold

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Two of the Brightest...

Wow, two of the brightest people on Kitco have found their way to the TFMetalsReport.  Many here would be wise to visit this forum and Bag of Gold's Penny Stocks... for the information found from these two sources is fantastic!  My original teachers, and looking back on it, I am glad I found such good ones.

Looking forward to monitoring this thread, and letting my brother know about it too.  One of my positions is NBRI that you (Bring the Gold) had let me know about at .02 cents.  Sadly I was in it at .02, but sold it because I was impatient.  Needless to say, it took off three weeks later.  I re-entered at .10 cents, and think that it has a lot of room to go, with a low share structure and management that is very responsive and on top of his stuff, news on funding from the EB-5 program being completed or ruby mine production to be ramped up should get this stock moving even higher. (IMO).  Although, it has had a powerful run, and may take a short breather if it can't sustain new highs.  Eitherway, thanks.

P.S. -- I edited to your request, let me know if you need anything else.

Scott J

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ScottJ...

Thank You So Much...my other Greatest Friend!...Watch the traffic pile in to view Bring the Gold's REE thread now!!!...

The word is out!!!...

Bag Of Gold

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New BTG Rare Earths Thread

Congratulations, BTG.  I hope you find a peaceful place to contribute here.

DayStar

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Haha, it's like a family

Haha, it's like a family reunion in here! Maybe if my luck continues we will get an appearance by Stormdancer!

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ScottJ wrote: Wow, two of the

ScottJ wrote:

Wow, two of the brightest people on Kitco have found their way to the TFMetalsReport.  Many here would be wise to visit this forum and Bag of Gold's Penny Stocks... for the information found from these two sources is fantastic!  My original teachers, and looking back on it, I am glad I found such good ones.

Looking forward to monitoring this thread, and letting my brother know about it too.  One of my positions is NBRI that you (Bring the Gold) had let me know about at .02 cents.  Sadly I was in it at .02, but sold it because I was impatient.  Needless to say, it took off three weeks later.  I re-entered at .10 cents, and think that it has a lot of room to go, with a low share structure and management that is very responsive and on top of his stuff, news on funding from the EB-5 program being completed or ruby mine production to be ramped up should get this stock moving even higher. (IMO).  Although, it has had a powerful run, and may take a short breather if it can't sustain new highs.  Eitherway, thanks.

P.S. -- I edited to your request, let me know if you need anything else.

Scott J

LOL, that might be a bit over the top ScottJ but thank you so much for your kind words! :-D

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Some REE news from Jack

Some REE news from Jack Lifton a good read to see which are the truly critical REE's. I tend to buy companies with good to excellent HREE deposits for the reasons Jack Lifton and Gareth Hatch outline. I also bought Lynas because I believe it is undervalued and large enough to eventually make a play for a smaller HREE heavy junior.

http://www.businessinsider.com/jack-lifton-profit-from-really-critical-rare-earth-elements-2011-9

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Bring the Gold...

Bring the Gold wrote:

Haha, it's like a family reunion in here! Maybe if my luck continues we will get an appearance by Stormdancer!

Ah but...stormdancer is here!...Click on the "Comments" tab...Type in stormdancer...& you will find him!...Time for the Harvey Organ thread now?...How about Collectivist...& his "Group Think" thread?...Bring the Gold...can you conjur up Collectivist...& then it will definitely be "one big happy family"?!?...

Bag Of Gold

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BagOfGold wrote: Bring the

BagOfGold wrote:

Bring the Gold wrote:

Haha, it's like a family reunion in here! Maybe if my luck continues we will get an appearance by Stormdancer!

Ah but...stormdancer is here!...Click on the "Comments" tab...Type in stormdancer...& you will find him!...Time for the Harvey Organ thread now?...How about Collectivist...& his "Group Think" thread?...Bring the Gold...can you conjur up Collectivist...& then it will definitely be "one big happy family"?!?...

Bag Of Gold

He's at Bullionstacker, I'm sure he would come if you asked. I meant I want Storm to respond to me lol. Not sure what the scoop is there, I sent him a PM awhile back. Maybe I somehow spooked him at BS?

I would love, love, LOVE for Storm to start a thread I can jump into. 

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I highly recommend that

I highly recommend that everyone read this Critical REE report by Gareth Hatch. It's absolutely free you just have to do some clicking and email checking: http://www.criticalrareearthsreport.com/

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Gareth Hatch identifies the

Gareth Hatch identifies the following five metals as being in critically short supply until between 2014-2017 with the top being the greatest shortfall and the bottom being the smallest. Most LREE's such as Lynas and MCP are going to produce will be in oversupply as early as next year. You can see why I tend to invest in HREE heavy deposits.

1. Dysprosium
2. Yttrium
3. Terbium
4. Europium
5. Neodymium
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I have now bought 2,500

I have now bought 2,500 Commerce at $0.52053 (weird 1000th's of a penny buy eh?) and waiting on MTCEF (Matamec to fill).

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BagOfGold

BagOfGold wrote:

Congratulations...on starting your REEs thread here!...You are a "wealth of knowledge"...& my friend...all I have to say is...

Bag Of Gold

Haha, I actually prefer the edited for TV version. I think it's funnier when the bad words are bleeped out. Perhaps more friendly to this site as well :)

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