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.

Potential
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.