Sunday, July 21, 2013

Invest in Rare Earth Metals through Stocks

With the huge demand for scarce elements used in cellphones, superconductors, magnets, televisions, wind turbines, car batteries, luminescent materials, lasers, medical equipment, regenerative brakes, and radar, investors are looking for ways to invest in these rare earth metals, also known as rare earth minerals or rare earth elements.
Although they are relatively abundant, these elements are hard to mine due to the fact that they are dispersed and not often found concentrated. These rare metals group consists of Scandium, Yttrium, Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium.
Lithium and manganese are often lumped in with rare earth metals due to their scarcity, but technically, they are not part of the rare earth element family. The easiest way to invest in these elements is through companies involved in the mining of the rare earth metals, over 25 of which have been turned up by

One example is Rare Element Resources Ltd. (REE) is a Lakewood, Colorado based $90 million market cap company involved in the exploration and development of rare earth mineral and gold properties. It has a 100% interest in the Bear Lodge Property in Wyoming, USA, which contains one of the largest disseminated rare-earth element deposits in North America, according to the US Geological Survey Professional Paper 1049D. Indicated resources at the company's Whitetail Ridge project includes U. S. Department of Energy critical rare earth elements Europium, Terbium, Dysprosium, and Yttrium, along with other elements Gadolinium, Holmium, Erbium, Thulium, Ytterbium, and Lutetium. The company, which trades on the New York Stock Exchange, is debt-free with 0.75 in cash per share. For the latest reported quarter, Rare Element generated negative earnings of 67 cents per share.

Another company is Molycorp, Inc. (MCP), based in Greenwood Village, Colorado, produces and markets rare earth and rare metal materials, including lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium. It owns the Molycorp Mountain Pass mine in San Bernardino County, California. The company has $1.37 billion in debt, and over $404 million in cash, with $2.15 in cash per share. 73.30%. Revenues spiked 73.30% for the latest reported quarter ending March 31, with a 4.09 loss per share. The company reports latest earnings on August 8.

A diversified way to invest in rare earth stocks is with the Market Vectors Rare Earths/Strategic Metals Exchange Traded Fund (REMX). This ETF has a goal of tracking the performance of the Market Vectors® Global Rare Earth/Strategic Metals Index. It has price to earnings ratio of 20 with a dividend yield of 2.4%.

For a list of rare earth metals stocks, which can be downloaded, sorted, and updated, go to This site also has a list of lithium stocks, which are not technically rare earth stocks, by are often included in the same investment arena.

Disclosure: Author did not own any of the above at the time the article was written.

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