For continued distraction, here’s a little Rhenium price chart for you. It should look roughly familiar. In this case the element peaked the earlier period, near 2007, even a bit earlier, when China had emerged as the world’s growth engine but without the manic credit expansion that occurred after the GFC.
Actually, looking at it, Rare Earths were a very early example of what happened to all the commodities. There were enough Rare Earth specifics (China control of the market, BE’s reference to low production cost via environment destruction and very low labor costs etc.) that the pattern was not recognized for what it was. Note Molycorp’s rise and fall to where it is today since it can hardly compete with market prices were they are.
I am familiar with this story because completely unexpectedly there is an odd deep deposit about 60 mi SE of me (Lincoln, NE). This was being billed as a rare earth deposit for years and was under the control of Molycorp as early as the 1970s. But it was sold off to another small junior company. Then a couple of years ago the CEO and a bunch of his cohorts came from Molycorp and claimed they realized the problem they had at Molycorp which was low pricing set by China. And he changed the focus of the deposit to Niobium along with Titanium and Scandium. They had to redo all the formal 43-101 reports to focus on those metals. This immediately helped the share price. Unfortunately the deposit is so deep (right under a corn field) that it has a $900M construction cost. The financials now still good with a high IRR from the looks of it. But I wouldn’t be surprised if it sits until commodities improve just like it has since the 1970s. Niocorp.
My point is if Auryn did not think that this rare earth find would add any economic value to their long term operation of the purchase option why would they even bother to mention it. I think you can understand that, especially since you know how smart the Auryn people are. BTW I sold my Rare stocks way back in 2008, my MCP and my REE.
Because it is a Rare Earth Chemical Element, It might not be a Rare Earth Metal, but it is still classified as Rare Earth at least in the mining world.
Please don’t be offended, but that’s not much of an idea… that’s the norm… except for the two day timeline. Make it two months or two years and then it’ll fit right in!
Very good Don, “Production” is very big to us at this time. The news does seem be getting much better as we progress towards the goals that have been set.
You can get L2 on Ameritrade for practically nothing. I think I have all of .35 in my account there…besides, it’s just a semi-meaningless snapshot of what’s happening at that moment…give it a whirl.
