With rare earth prices falling alongside company share prices many rare earth companies are highlighting their heavy rare earth deposits which are of higher value.
Reuters Africa reported that a delayed feasibility study on one of Avalon Rare Metals' (AMEX:AVL) caused the company's shares to drop.
The Paragon Report released research on Quest Rare Minerals Limited (TSXV:QRM,AMEX:QRM) and Avalon Rare Metals (TSX:AVL,AMEX:AVL).
Shares of rare earth firms have taken a serious hit this week. The fall came as a result of J.P. Morgan downgrading shares of Molycorp to a neutral rating. However, the fundamentals of the market have not changed, and prices for the elements are still up for the year.
China has released the total mining output quota for 2011. The country has increased the level of the total by a modest 5 per cent over 2010. Along with the announcement officials stated that new permits for prospecting and mining will not be granted until June, 2012, which further exacerbates supply issues going forward.
Much news has been made about China’s controls of rare earth exports. As those events effect the pricing of the 17 elements that make up the rare earth block, mining juniors around the world are rushing to secure promising rare earth deposits. Here’s a look at companies recently in the news.
News of China’s cutbacks to rare earth quotas have prompted many rare earth mining companies to accelerate feasibility studies and preparations to break ground on new projects. Major firms dependent on rare earth oxides such, as aerospace giant Boeing, are now helping with the search.
As China severely reduces export quotas, the rest of the world is waking up to the reality of finding new sources for rare earth elements. This is a breakdown of some of the rare earth projects being developed outside of China.
At the halfway point, 2010 has not been kind to junior rare earth companies, many of which have watched their stock prices fall. But, with China restricting exports interest in developing new resources is growing.
Avalon Rare Metals Inc. (TSX:AVL)(OTCQX:AVARF) reported an updated Indicated Mineral Resource estimate based on assay results of 44 definition holes (9,101 metres) drilled during the 2009 summer drilling program.
Monday, November 21, 2011