- Rare earths are vital due to the many climate-focused applications that require permanent magnets
- Demand is expected to increase by more than 40% in the next two decades as investment in the sector increases
- Here are 10 of the cheapest rare earth stocks if you’re looking to take a ride
All critical minerals are essential for key technologies such as high-tech electronics and defense that underpin a nation’s prosperity and security; however, rare earth elements (REEs) are particularly vital due to the many climate-focused applications that require permanent magnets.
Neodymium, praseodymium, dysprosium and terbium constitute the “magnetic rare earths” needed in the manufacture of electric vehicle motors and wind turbines.
Over the next two decades, the International Energy Agency says demand for rare earths will increase by more than 40% with clean technologies becoming the fastest growing market as countries around the world work to meet their commitments. zero net emissions by 2030 and 2050.
As is the case with most critical minerals, China commands around 85% to 90% of the global supply and while other countries mine REEs, most of the processing still takes place in China.
But this is beginning to change.
Governments like Australia’s are beginning to realize the importance of developing a local supply chain, as evidenced by ScoMo and Co’s $1.2 billion investment to help Iluka Resources build a new rare earth refinery in Australia Western.
Bosses like Twiggy Forrest are also coming into fashion, with his privately held company Wyloo Metals lending $150 million to Hastings Technology Metals, paving the way for the aspiring rare-earth producer to become a more vertically integrated company.
Hastings will use the proceeds to fund a 22% stake in Neo Performance Materials, which is listed on the TSX and owns the only operating commercial rare earth separation facility in Europe.
As an essential enabler of the energy transition, rare earth elements will remain a hot commodity for many years to come, and although prices hit their highest point in a decade in February, experts say they remain in a really good space in compared to five years ago. – further incentivize new investment.
Here are 10 of the cheapest rare earth stocks if you’re looking to take a ride, because: As legendary investor Rick Rule puts it: “It’s much easier to get a 10,000 bagger if you start with a market cap of less than $2 million, than if you start with a market cap of $200 million.”
Bargain Barrel: 10 Cheap ASX Rare Earth Stocks
Market Cap: ~$5.7 million
Resource Base is a metals explorer targeting clay-hosted REEs and VHMs in Victoria and South Australia.
The company has submitted three exploration license applications at the Miter Hill Project totaling 1,021 km2 in Victoria for homes that it considers prospective for clay-hosted rare earths (REE) and would increase its total footprint to 7,022 km2.
The Miter Hill Project has the largest land position on the southern margin of the Murray Basin, an emerging clay-hosted rare earth enclosure of global importance.
Market Cap: ~$6 million
In late May, Terrain discovered clay-type rare earths in large areas within its 320 km2 dwelling area at the Lort River Project in southern Esperance, Western Australia.
These multiple ‘walk-up’ drill targets demonstrated a high percentage of valuable rare earth magnetic elements up to 35% of total grade, as well as high grade scandium.
Terrain intends to advance exploration at Lort River, targeting the underlying clayey horizon below the shallow soil anomaly.
Other players in the region include Meeka Metals (ASX:MEK) with its Cascade Project and OD6 Metals’ (ASX:OD6) rare earth projects Grass Patch and Splinter Rock.
The holding also covers the Kateup Creek, Helms, Bishops Hat and Lauriana Shear zones and is prospective for gold and base metals, in addition to the high value, high grade, shallow rare earth mineralization already identified.
Market capitalization: ~$6.1 million
Mt Monger has a portfolio of four projects with East Laverton and Ravensthorpe with exposure to REE mineralization.
The Ravensthorpe project is located within the Albany-Fraser Orogen, an emerging provincial-scale clay-hosted rare earth element opportunity where Meeka (ASX:MEK), Mount Ridley Mines (ASX:MRD) and OD6 Metals (ASX :OD6 ) have recently seized ownership of the land.
At Laverton, recent broad and shallow rare earth element mineralization within saprolitic clays was identified by air core drilling with significant intersecting TREO.
Highlights include TREO 15m to 1461ppm from 21m and TREO 5m to 1790ppm from 27m; planning and permitting are currently underway for further drilling.
Market capitalization: ~$7.2m
Ausmon is hunting rare earths southeast of Adelaide on the limestone coast of South Australia, where it was recently awarded four new exploration licenses covering 2,775km.
Australian Rare Earth (ASX:AR3) is already exploring a large area in the region and announced a 104% increase in its JORC Inferred Mineral Resource to 81.4 Mt at 785 ppm TREO (Total Rare Earth Oxides) at its project Koppamurra in July.
Ausmon has developed an exploration strategy for selected sites within the dwellings to collect, where available, bulk samples to identify any clay fractions that may be screened through shallow auger cross-drilling along the shoulders of the roads.
This work is scheduled to begin this September quarter and if areas with elevated REE results are identified, confined space air-core drilling will be conducted with the goal of defining a resource that, if successful, can be developed later. for commercial extraction.
Market capitalization: ~9.6 million dollars
Osmond listed on the ASX in April after raising $5 million.
A soil sampling program has taken off at the Sandford Project in western Victoria with the aim of identifying areas of possible clay-hosted REE mineralisation.
The show is scheduled to take about two weeks and rehearsals are anticipated another six weeks later.
Market capitalization: ~9.6 million dollars
Air core and reverse circulation drilling targeting potential hydrothermal rare earth mineralization has just been completed at the West Tanami Project, 200km south of Hall’s Creek in Western Australia, where no prior exploration has taken place.
The company says the first pass drill lines have returned favorable geology consistent with the targeted style of mineralization and looks forward to seeing what the assays show.
Aircore drilling focused on two REE targets to the north, which were identified from magnetic and radiometric data, and where drilling intersected favorable geology, RC holes were completed at a greater depth to provide enough sample for a more extensive work. additional analysis.
All samples from the program have been collected and sent to the laboratory in Perth, with results expected within the next two months.
Market capitalization: ~$11.4 million
In March, Reach Resources invested $1.8 million in REEgenerate, a private Australian company and owner of the Coconut Club REE exploration project in Quebec, Canada, which recently acquired REEcycle Inc, a rare earth element separation and technology company. (REE) based in the USA focused on the recovery of REEs from high-power permanent NdFeB magnets.
REEcycle has developed a process that has demonstrated on a pilot scale the ability to recover 15 of the 17 rare earth elements in discarded NdFeB permanent magnets, with a recovery efficiency greater than 99%.
The proprietary process developed at the University of Houston uses a proprietary solvent to safely and efficiently extract REEs from scrap with low temperatures, low pressures, and minimal waste and energy needs.
In pilot testing, REEcycle’s technology has demonstrated the ability to safely extract 15 of the 17 rare earth elements found in discarded permanent magnets in e-waste from its pilot plant in Houston, Texas.
Market capitalization: ~$12.2 million
Victory Goldfields has discovered an alkaline intrusive complex at its North Stanmore bull’s eye magnetic anomaly, with ores containing nickel and rare earth elements (REEs).
Initial assays include up to 1022 ppm nickel, up to 127 ppm cobalt and up to 244 ppm copper, which have been confirmed by petrology and mineral chemistry to be associated with pentlandite (nickel iron sulphide).
Discovering an alkali intrusion is a big deal, as these are the powerhouses for rare earth elements and critical metals.
The company has also executed a binding agreement for the strategic property adjacent to this new discovery.
Market capitalization: ~$13.7 million
Megado’s name was changed from Megado Gold during the quarter to reflect the company’s growing exploration mandate.
The company is in the process of brainstorming new critical mineral project ideas and investigating new opportunities to add to its growing portfolio: in June it acquired 100% of the issued share capital of Felix Strategic Minerals to acquire the rights, title and interest at the North Fork Rare Earths Project in Idaho.
The North Fork contains multiple high-grade carbonatite-hosted REE mineralized veins that have historically been observed at surface along various prospects over 10 km along strike.
Carbonatite veins, outcropping at the surface of the Silver King prospect, have historically produced total rare earth oxides (TREO) of up to 10.3% and critical rare earth oxides (CREO) of up to 1.2% obtained through channel sample tests.
Market capitalization: ~$14.3m
Lithium is in fashion, as are rare earths, cobalt, nickel… gold isn’t too bad either. White Cliff has exposure to ALL of them.
This critical mineral explorer is on the ground at the early stage of the Yinnetharra lithium and rare earth project in the Gascoyne region of Western Australia, where on-site exploration previously focused on uranium.
Earlier this month, a new batch of “accelerated” rock chip samples returned results of up to 780 ppm TREO rare earths.
About 13 samples were submitted as proof of concept that REEs were present within the project area, with the remaining 115 samples to be delivered shortly.
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