The Canada-listed rare earth stocks we’ve found could benefit from the drive for U.S. domestic supply
SmallCapPower | April 24, 2020: Australia-based Lynas Corp. announced recently that it was chosen by the Pentagon to process heavy rare earths imported from Australia in a plant to be built in Texas. U.S. President Trump has long been talking about securing a domestic supply of these specialized minerals and metals critical to producing weapons and high-tech equipment and, given that U.S.-China relations are at the lowest level in years, investor interest in rare earth project developers is poised to accelerate. Today we have dug up three Canada-listed rare earth stocks that could benefit from the continued push to lessen the dependence in the United States on foreign-produced strategic minerals and metals.
*Returns are based on closing stock prices as of April 23, 2020
Energy Fuels Inc. (TSX:EFR) – $2.68
Energy Fuels is a U.S.-based uranium mining company and has been the largest producer of uranium in the United States during the past four years. The Company also produces vanadium from certain of its projects, as market conditions warrant. Energy Fuels has assets that include the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of more than eight million pounds of U3O8 per year. On April 13, 2020, Energy Fuels announced its entry into the Rare Earth Element (REE) sector, believing its fully licensed and constructed White Mesa Mill can play a key role in bringing the REE supply chain back to the U.S. from China.
- Year-to-Date Return: 8%
NioCorp Developments Ltd. (TSX:NB) – $0.69
NioCorp Developments is focused on developing its Elk Creek project in Nebraska, which expects to produce niobium, scandium, and titanium from a single ore body. Elk Creek is expected to be the highest grade niobium project in North America as well as one of the world’s largest potential producers of scandium. Niobium is used to produce superalloys as well as a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. On April 13, 2020, NioCorp announced that it has signed a non-binding letter of intent in which a U.S.-based steel producer will purchase up to 25% of NioCorp’s production of ferroniobium over the first 10 years from Elk Creek.
- Year-to-Date Return: – 16%
Ucore Rare Metals Inc. (TSXV:UCU) – $0.135
Ucore Rare Metals explores for rare earth elements in Canada and the U.S. The Company holds 100% of the land in the Bokan Mountain/ Dotson Ridge property located on Prince of Wales Island, Alaska, which the Company claims is the highest grade heavy rare earth project within the United States. Ucore also holds claims through a wholly-owned subsidiary in the Ray Mountains, Alaska.
- Year-to-Date Return: – 41%
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