Monday, October 20

REM tipped by Midas

Midas likes Rare Earth Minerals (REM)

After being battered by the markets for no particular reason in recent days (i.e. down around 40% !) REM got a welcome boost today in the form of a recommendation by well-respected and widely-followed analyst Midas in the Daily Mail.

REM is into lithium producing, amongst other things, and has a mine in Mexico. Lithium is going to be increasingly important in the future and Midas even mentions the possibility of a link-up between REM and Elon Musk's gigafactory in Nevada (possibly even relatively soon).
a tieup between Tesla and Rare Earth would make sense. And some canny observers believe such an agreement might happen relatively soon.

early indications suggest REM's mine could yield significantly more than 3.3 million tons of lithium. The group is also planning and designing its production plant, which is due to be up and running in 2017, with annual production of at least 50,000 tons.

Here is REM's 6 month chart that shows the unwarranted damage done in recent days and the partial bounce back after the Midas article was published.

The Midas effect may fade or it may not, so just what price is a good price at the moment is difficult to say. It will also depend in part on what the markets decide to do this week - is the 'correction' over or is there more to come? The DOW right now (Monday 20 October pm) is down 92 points, but apparently the drop in IBM accounts for 85 of those points.

Midas' verdict however about REM is pretty clear
Midas verdict: Rare Earth Minerals is a true penny share and it has been buffeted by weak market sentiment over the past few days. The long-term outlook is sound however.

At 1p, this is an attractive prospect for the adventurous investor.

Friday, September 26

Rare Earth Minerals - the future is lithium?

Rare Earth Minerals - worth a punt?

First things first - take a look at the 6 month chart

It's been consolidating since it spiked up from 0.6p to almost 2p - so there is potential!

Second things second - what a better chartist than me says about the charts

Third things third - here is a summary of what the Motley Fool has to say about Rare Earth Minerals

Rare Earth Minerals – Amazing 2014, but not done yet and could rise further.

3 reasons why you might want to consider an investment in REM (current price 1.43p).

1. Demand for lithium is on the increase

  • Rare Earth’s principal commodity is lithium. Lithium is essential in today’s world.
  • The company says demand for lithium ion batteries in electric vehicles will more than quadruple by 2020!
  • Demand for ‘smart-grids’ will also drive demand.
  • Global demand for lithium should double by 2021 and continue growing indefinitely.
  • As world becomes ever-more interconnected, notably due to the rise of the ‘internet of things’, demand for lithium ion batteries will surge. Rare Earth Minerals assets specifically focus on lithium.
2. Greenland

  • REM has exploration licenses in Greenland.
  • It has just been announced that these contained gold and silver deposits that were unidentified up to now, plus rare earth elements.
  • REM has major plans for these prospects, and the company is probably on the verge of finding a huge resource at the underexplored location.

3. Diversification

  • Rare Earth Minerals has a number of other projects under development, having acquired interests in lithium prospects around the world i.e. Mexico and Australia, thus reducing risks.
  • REM owns a share in the company operating the license thus further reducing risks.
  • It recently increased its holdings in Bacanora and Nevada Lithium Co.

REM has lots of attractive qualities but is still in the early stages of development. Therefore things could go wrong, or the share price could x 10 over time. DYOR etc…

There appears to be resistance at 1.6p on the charts, so you might want to watch it carefully to see what happens. After the recent announcement of gold in Greenland the shares spiked up above 1.6 but fell back quite quickly, so a gamble but not a very risky one IMHO!

Fourth things fourth - David Lenigas is the Executive Chairman and he generally knows what he is doing.