Relevant Books
- Thread starter Billal82
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Hello , I think the BEST source of Data /Investment advice on RARE EARTHS is found at the Northern Miner Newspaper *( a weekly Mining Newspaper ) considered one of the BEST .It carries ongoing stories /reports on RARE EARTH deposits /Critical Minerals with all types of inputs both academic and Industry .The Northern Miner ( I think it is about $300 Dollars per year )
Thanks John.
The closest resource I’ve found so far is a book titled Rare Earth Riches by Brian Obodeze. However, it appears to rely largely on information compiled from online sources rather than original insights from an industry expert.
More broadly, it has been difficult to find detailed explanations, particularly around VC and private equity structures and royalty models. I was hoping for deeper coverage of deal structures, including how investments are made across the different phases of mining, from exploration through to production.
Happy NYE
I have heard that some VC were looking into RE. But i think that was because Apple made that "investment" (donation cough cough) into MP. But I don't see many VC's looking at the traditonal mine/processor/magnet companies.
There are a bunch of Rare Earth tech companies out there, that could be the target of VC. ie they are looking for tech that changes the industry. This is super high risk investment. The world has taken 40+ years to get the RE Magnets to where they are today. Any new tech will take at least another 20 years to compete. unless there is a major breakthrough.
Private equity is involved. Serra Verde is a great place to start looking. But from what I understand, those who invested, had to dig deep. And I bet they are not yet making a decent return.
Another good way to research it, is to look at how Arafrua is financed and about to reach FID. They have seemingly done their finance back to front. ie traditional mining finance is lock in off take, raise some equity and then some debt. They have done (mainly) debt first, then equity and finalise the off take. Now I know there have been off take agreements along the way.....but it shows how different and difficult raising funds for a rare earth project has been.
And the big questions you need to then ask....is why? The world need lots more RE....so this should be easy yeah?
The answer is China. And how they have been manipulating RE prices, playing with our sharemarkets and laws, and even tresspassing onto ex-China mine sites to gather data. They have been tryign to stop ex-China supply coming online for the last 20 years.
And that is why it is so hard to finance a ex-China RE mine. And why Govt's are stepping in to finance.
Also add to that...they higher environmental standards in the west, higher labout costs etc......most banks/funds just run away and stick their cash into the NASDAQ. easy money.
Sorry...bit of a rant.
But we are involved in the background on alot of deals. And with how the world is likely to change in the next 10 years...they companeis will be 'blue chip'. There will be alot of consolidation....and the big players will dominate the market. I think Gina R will be one of the richest people in the world in about 10 years time.
Truthraider
New member
Interesting discussion. The fact there are daily updates on this wonderful site in just the REE arena shows how quickly things are moving. The infusion of US government money into REE's in addition to government and private offtake agreements illustrate the importance of REE's in a reliable and non-volatile supply chain. Things are moving so fast that by the time someone researched, analyzed, compiled, wrote, etc., a book, the information and current landscape would be different by the time book hit the shelf.
Slightly off topic are the precious metals mining companies. With the AISC remaining largely the same for precious metals miners and the price of the commodities skyrocketing, many precious metals mining companies should reap massive, previously unattainable levels of profit. How they manage the profits - debt reduction, CAPEX improvements, dividends, stock buybacks, etc, will differ and some companies will do better than others. However, we may also start to see precious metals companies start to seriously look at the economic feasibility of recovering REE's in their current operations (ie. - Cleveland Cliffs with their MN Fe mines).
https://rareearthexchanges.com/news...re-earth-revival-amid-improved-steel-outlook/
High profits could also lead precious metals companies to target buying smaller REE operations (especially those with processing capabilities as they start to come online).
Some of that is purely just me engaging in speculative thought and I could be 100% wrong, but regardless, it is a fascinating time to be involved in REE's.
Slightly off topic are the precious metals mining companies. With the AISC remaining largely the same for precious metals miners and the price of the commodities skyrocketing, many precious metals mining companies should reap massive, previously unattainable levels of profit. How they manage the profits - debt reduction, CAPEX improvements, dividends, stock buybacks, etc, will differ and some companies will do better than others. However, we may also start to see precious metals companies start to seriously look at the economic feasibility of recovering REE's in their current operations (ie. - Cleveland Cliffs with their MN Fe mines).
https://rareearthexchanges.com/news...re-earth-revival-amid-improved-steel-outlook/
High profits could also lead precious metals companies to target buying smaller REE operations (especially those with processing capabilities as they start to come online).
Some of that is purely just me engaging in speculative thought and I could be 100% wrong, but regardless, it is a fascinating time to be involved in REE's.
Silver is an interesting case in point. Most silver is made through byproducts. There are very few pure play silver mines out there. So the market does not respond quickly. And with silver being used much more in everything.....there is a big squeeze about to come. I'm invested pretty heavily in silver. Nothing fancy.....just ETFs and Funds. I think it will ride up another couple of years.
The problem with RE coming from a precious metal miner....is that they will only ever supply some MREC...and not an oxide. I can't see them spending the time/capital to do that level of processing. So they will likely do deals with a processor. And they will get some nice extra profit.......but the real bottleneck is the processing. Its hard to deal with all that radiation.
