Insiders Are Buying These 3 Heavy Rare Earth And Mining Stocks
- Details
- Category: Rare Earth News
- Published on Wednesday, 09 January 2013 17:12
- Hits: 2665
How many times have we heard the saying "Bet on the jockey not the horse"? This can be easier said than done with the requirement to do extensive due diligence on the jockey and still face execution risk. Yet with factual data at our finger tips, many times distractions draw our attention away from one of the easiest measures of a potentially undervalued situation. What do the officers and directors of that company think of their equity investment opportunity and are they willing to do anything about it? How much equity do insiders own? Has management been purchasing shares?
A long time ago a mentor of mine told me, investors sell stock for many reasons, but only buy stock for one, to make money. And we have to assume if insiders are buying, they not only want to make money but feel especially strongly about the future of their company.
Below are three companies in the heavy rare earth metal and mining space that recently have enjoyed insider buying and I believe are worth investors consideration for a buying opportunity.
Gold Resource Corporation (GORO) is a mining company that pursues and produces gold and silver projects in Mexico. For the most recent third quarter, GORO generated $36.5 million in revenue, $23.8 million in gross profit and net income of $7.3 million. As of September 30, 2012 the company had approximately $36.2 million in cash and cash equivalents or $0.69/share. The stock has seen its share of volatility recently which is well documented in a separate Seeking Alpha piece which you can find here.
Mr. William Reid, Chairman and CEO, purchased 6,188 shares on November 21, 2012 and currently owns 2,745,669 shares or 5.1% of the company. Mr. Reid previously co-founded and served as CEO of US Gold Corp. (USGL) from 1977 to 2005 where he helped build six producing mines.
Texas Rare Earth Resources is a mining company engaged in the acquisition, exploration and development of mineral properties primarily from their 950 acre Round Top lease located in Hudspeth County, Texas. An initial independent assessment detailed an estimated over 1 billion metric tonnes of measured, indicated and inferred resources containing 531 grams per tonne or over 1 billion pounds of rare earth metals including uranium contained at this location.
The company recently issued a detailed release highlighting that the company and insiders have recently purchased over 1.5 million shares or over 4% of the common shares outstanding. The company along with three directors recently purchased 1,000,000 shares, and separately directors earlier purchased another 559,025 shares at an average price of $0.384/share. Chairman, John Tumazos, is the beneficial owner of approximately 2.3 million shares consisting of 1.8 million common shares, 149,000 warrants and 369,446 options or 6.2% of the company.
The company's current game plan is to work towards monetizing their assets starting this year. In a recent announcement, the next phase in the monetization process was initiated with the air quality baseline study so that permitting can move forward on the property which could make it more attractive for strategic alternatives. The company has sufficient capital to move forward with this strategy through 2014.
Revett Minerals' (RVM) principal assets consist of a 100% interest in a Troy silver and copper mine in northwest Montana and a 100% interest in the undeveloped Rock Creek silver copper development project also located in northwest Montana. Recently, the company issued a release providing shareholders with an update on the monitoring activities at its Troy Mine. Data collected over the past two weeks suggests that conditions at Troy have stabilized and management believes that it will be back to production quickly after conducting all safety measures.
Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com
Rare Earth Sector Gains; Buy With Balter?
- Details
- Category: Rare Earth News
- Published on Tuesday, 08 January 2013 17:30
- Hits: 1648
There’s a minor fervor Monday for rare-earth firms, sending the sector’s exchange-traded fund to what is now a nearly 5% 2013 gain. Will it last?
Lawrence Balter of Oracle Investment Research, tells Barron’s that he’s hopeful. That, at least, is what he says when it comes to the most closely watched U.S. stock in this sector, rare-earth miner Molycorp (MCP). The stock plunged 67% last year, but at $10 or so — shares are up 10% this morning, to $11.37 — “the stock discounts all the bad news and then some,” the Barron’s Trader column quotes him over the weekend as saying. Balter sets a price target of $50.
“[Molycorp is] ramping up production at a new Mountain Pass, Calif., mine and China — the world’s biggest producer of these metals, like molybendum and titanium — is closing down some mines,” writes the Trader column.
The Market Vectors Rare Earth/Strategic Metals ETF (REMX), which I predicted in my column over the weekend should do better in 2013 than its rough time last year, is ahead by 1.5% this morning.
There’s also a note this morning from Commerzbank’s strategists: Mixed in its implications for the sector. Most notably, they’re entertaining the end of China’s near-monopoly:
Ten days ago, the China Ministry of Commerce set the first tranche at 15,501 tons, 27% down on last year’s figure. As a rule, the ministry approves another tranche in the second half of the year. In total, last year’s export quota amounted to 30,996 tons. Meanwhile, Australian company Lynas Corp has begun commercial production of rare earths in its controversial plant in Malaysia following considerable delays. This could put an end to China’s quasi monopoly.
Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com
Lynas Ramps up Rare Earth Processing in Malaysia
- Details
- Category: Rare Earth News
- Published on Tuesday, 08 January 2013 17:05
- Hits: 2470
Australia’s Lynas Corporation yesterday commissioned its controversial rare earth plant in Malaysia.
The first delivery of commercial rare earth product is expected in the next few weeks.
In a statement released yesterday Lynas said they have successfully begun cracking and leaching rare earth extraction units and production will continue to ramp up over the next three to four months.
“This is another significant milestone for Lynas,” said Lynas executive chairman Nicholas Curtis.
Following the announcement the company’s shares rose 14 per cent.
It was a good day for rare earth companies around the world yesterday with Molycorp and Great Western Minerals also seeing their share prices rise by 9.8 per cent and 4 per cent respectively.
At full production Molycorp, Lynas and Great Western are expected to end China's grip on the rare earth market of which China currently controls more than 95 per cent of the global supply, mining.com reported.
In November Australian Mining reported Lynas had received its first shipment of about 100 containers of rare earth concentrate at the Malaysian plant. At the time the company expected the first kiln feed to take place just a couple of days later.
However, the company has been embroiled in legal action launched by the Save Malaysia, Stop Lynas group which aimed to block Lynas from acquiring a temporary operating licence for the new facility.
“The safe and efficient operation of the LAMP is now a reality, and we are providing real-time data that assures people the LAMP is entirely safe for our local communities and the environment,” Curtis said.
Protests took place outside the company’s Sydney head office in November last year amid concerns from the Greens that radio active waste produced at the Malayasian plant would be shipped back to Australia.
Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com
MAGNETICS 2013 Addresses Rare Earth Supply Chain Issues
- Details
- Category: Rare Earth News
- Published on Tuesday, 08 January 2013 17:20
- Hits: 2600
GREENWOOD VILLAGE, Colo. — Magnetics 2013 has announced an industry-leading line-up of magnetics experts who will be addressing current market conditions and what's ahead for end-users and the magnetics industry in the years to come. There are rising concerns over cost and foreign control of the current supply of rare earth resources, which has motivated a search for new sources outside of China and for non-rare earth permanent magnets. Magnetics 2013, taking place February 7-8 in Orlando, Fla., will address rare earth (RE) supply chain issues, permanent magnet (PM) alternatives and RE-free magnet options for motor applications, the latest in magnetic materials R&D from leading National Laboratories, and the latest advancements in design and testing.
“The area of rare earths has been a hot topic for the last couple of years. This year’s line up at Magnetics 2013 offers our most diverse coverage to date of the rare earths crisis including supply and demand as well as PM alternatives,” said Heather Krier, conference program manager and editor of Magnetics Business & Technology magazine. “This is a once-a-year opportunity for professionals involved in magnetics technologies to not only get the latest information on the global issues of rare earths, but to learn the latest advancements in magnetic applications, technology and materials.”
Magnetics 2013 is offering informative pre-conference workshops on February 6th to complement its in-depth conference program. The workshops, which have limited seating to ensure each attendee receives individual attention, will sell out.
The conference offers new low rates until January 10th. Special discounts for OEMs are also available.
Magnetics 2013 is co-located with Motor & Drive Systems 2013.
Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com
Rare Earth Products Expected in Few Weeks
- Details
- Category: Rare Earth News
- Published on Tuesday, 08 January 2013 16:53
- Hits: 2766
KUANTAN: Lynas Corporation is expecting the production of commercial rare earth products in a few weeks.
This follows the successful commissioning of its kiln to produce mixed rare earth sulphate.
“The process has achieved a recovery rate of more than 90% of contained rare earth oxides.
“The mixed rare earth sulphate is now being fed into the solvent extraction units for ultimate production of individual rare earth products,” Lynas said in a statement on its website yesterday.
It added that the production would be intensified in the next three months.
Lynas executive chairman Nicholas Curtis hailed this as another significant milestone for the company.
“The safe and efficient operation of the Lynas Advanced Materials Plant (LAMP) is now a reality.
“We are providing real-time data that assures people the plant is entirely safe for our local communities and the environment.
“We are excited to start creating value at the LAMP and we look forward to sharing that value with all our key stakeholders, including the communities in which we operate,” Curtis said in the statement.
The statement also said Lynas was now producing sufficient quantities of solid residue to start the production of synthetic gypsum and aggregate co-products.
It said this would enable co-product samples to be produced for testing and market trials for commericial distribution.
During a site visit last month, Lynas Malaysia managing director Datuk Mashal Ahmad said the company had spent RM10mil to build a synthetic aggregate plant to recycle the residue.
Lynas was issued a temporary operating licence effective from Sept 3 last year and announced that it had commenced operations on Nov 30.
Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com
sales@chinatungsten.com
闽公网安备 35020602000140号