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Rare Earth Mining Whisper

Rare Earth Mining Whisper
 

Research Question: Are Allied Nevada and Newmont Mining sitting on a treasure trove of rare earths that will unlock a new stream of revenue or provide only a one-time windfall?

Companies Covered: Allied Nevada Goldcorp (ANV), Newmont Mining (NEM)

Report Available: August 30, 2013

 

Blueshift’s initial research indicates the potential for new sources of revenue from rare earth sales for distressed mining companies with properties located in the Western United States, though the sustainability and magnitude of profit potential is uncertain.

 

Observations

  1. Shares of many precious metal miners have collapsed as a result of steep price declines in the commodity markets. As the profitability of many companies in this space relies upon prices of gold and silver higher than current spot rates, company executives will likely be searching for ways to generate additional revenue from their current assets.
  2. Production of rare earth group elements in the United States is a growing space of interest as a result of both increased demand and potentially unfavorable trade developments with China, the major source of rare earth production. Critical for modern technology and electronics, rare earth metals have appreciated dramatically in price over the past decade.
  3. Geologists in the United States are beginning to evaluate mining tailings and inactive mines from the 19th and 20th centuries in order to estimate the presence of rare earths, exposing the possibility of new streams of revenue or a singular windfall event for mining companies that own the property.

 

To gain insight into the potential presence of latent assets in mining properties in California, Nevada and Colorado, Blueshift will gather data from independent sources in the following silos: USGS surveys, professional and academic Geologists operating in the regions, and scrap metal brokers.

 

To see other ideas Blueshift Research is currently working on, please click here.