The Canada-listed rare earth stocks we’ve discovered have seen recent momentum from U.S.-China trade tensions
SmallCapPower | June 5, 2019: Rare earth metals have become a hot commodity due to increased demand for rare earth magnets that are used in electric vehicles and clean energy solutions. These metals and alloys are also used in cellphones, batteries and flat screen monitors, among other electronics. Rare earth metals are a category of 17 chemical elements on the periodic table, which include scandium, yttrium and 15 lanthanides. The rare earth market has been predominately dominated by China, but with increased demand and recent trade uncertainty between the U.S. and China, there is room for companies to benefit from the trade tension (The Guardian, 2019). Today we have dug up four Canada-listed rare earth stocks that have experienced strong price and volume momentum during the past month.
*Share prices as at close June 3, 2019, data obtained from S&P Capital IQ
Ucore Rare Metals Inc. (TSXV:UCU) – $0.26
Metals and Mining
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. Ucore also holds claims through a wholly-owned subsidiary in the Ray Mountains, Alaska. On April 2, 2019, the Company stated it had entered into a secured loan agreement with Orca Holdings, LLC for $3.6 million. The loan will be used for working capital purposes and to resolve any short-term amounts owing to Orca over the next six months.
- Market Cap: $72.2 Million
- 30 Day Average Return: 116.7%
- 30-Day Average Daily Volume (1,000): 696
- 90-Day Average Daily Volume (1,000): 271
Avalon Advanced Materials Inc. (TSX:AVL) – $0.11
Metals and Mining
Avalon Advanced Materials is a Toronto-based mineral development company. The Company specializes in critical metals and minerals with three advanced-stage projects that have access to lithium, tin, indium and rare earth elements: tantalum, niobium and zirconium. Avalon’s main priorities are its Separation Rapids Lithium Project near Kenora, Ontario, its East Kemptville Tin-Indium Project in Yarmouth, Nova Scotia and the advancement of its Nechalacho Rare Earths asset at Thor Lake, NWT. On January 30, 2019, the Company announced Cheetah Resources Pty Ltd., a private Australian company, as a new partner to participate in the development of the rare earth resources at the Nechalacho Project. The companies have signed a Term Sheet with Cheetah, which has acquired ownership of the near-surface resources in the T-Zone and Tardiff Zones for total cash consideration of $5 million, and Avalon will have ownership of the resources in the Badal Zone and manage work programs on the Property and maintain its 3% NSR type royalty.
- Market Cap: $31.4 Million
- 30 Day Average Return: 110.0%
- 30-Day Average Daily Volume (1,000): 3,019
- 90-Day Average Daily Volume (1,000): 1,165
Medallion Resources Ltd. (TSXV:MDL) – $0.17
Metals and Mining
Medallion Resources is a Canada-based company that has operations consisting of acquisition, evaluation and exploration of mineral properties. The Company is focused on a low cost, near-term, rare earth production strategy that utilizes mineral monazite, which is a by-product mineral that is produced from large heavy-mineral-sands mining operations and is looking for a monazite processing partnership that could process monazite into a rare earth product. This should allow the Company to pursue near-term magnet metal production, which is needed in vehicle electrification, wind power generation and robotics. On March 15, 2019, the Company announced that it is increasing the size of its non-brokered private placement to up to 7 million units at a purchase price of $0.09/unit for total proceeds of $630,000. The proceeds will be used to further metallurgical test programs and for general working capital purposes.
- Market Cap: $6.3 Million
- 30 Day Average Return: 73.7%
- 30-Day Average Daily Volume (1,000): 310
- 90-Day Average Daily Volume (1,000): 248
Canada Rare Earth Corp. (TSXV:LL) – $0.085
Metals and Mining
Canada Rare Earth is developing a vertically and horizontally-integrated business that focuses on rare earth properties in Canada. Currently, the Company is active at four different properties. One of the projects is the Company’s Red Wine project, which is located approximately 160 kilometers northwest of Happy Valley-Goose Bay, Newfoundland. The next is the Clay-Howells property located 45 kilometers north-northeast of Kapuskasing, Ontario. The Company’s third property is the Coldwell Complex project located in the Coldwell Alkaline Complex in northern Ontario. The last development is the Hinton Coal property located over 305 kilometers west of Edmonton, Alberta.
- Market Cap: $15.1 Million
- 30 Day Average Return: 36.4%
- 30-Day Average Daily Volume (1,000): 548
- 90-Day Average Daily Volume (1,000): 241
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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