LYC: rare earth minerals the next big thing

[moe]

This stock is on track to be my first ten bagger.

Just wait for this global warming hysteria thing to really kick off an this will rocket.

[slam]

quote:Originally posted by moe

This stock is on track to be my first ten bagger.
....

Moe
if it is close to a ten bagger already, you may get a twenty bagger out of it

Nice rise today

Cheers
Slam

[moe]

2 announcements out today, tax exemption from malaysian government, all good.

[moe]

Broke $1.00 today!!

[denpal]

quote:Originally posted by moe

Broke $1.00 today!!

Rare Earths are HAULING!! Look at ARU today too.

Tip: Look at NAV, they have a very prospective REE deposit with historic drill results that is being drilled this month to JORC. Free-call on REE as NAV is primarily a fairly priced IMHO gold junior.

[cantab]

Speeding ticket, company thinks that a report by a US based well respected US financial market commentator may have generated significant interest in the company by international investors.

[donnie]

this is from theanchorhouse.com 10/10/06

By Clint Cox

In 1992, Deng Xiaoping, then ruler of China, put the world on notice with the following statement:

“There is oil in the Middle East; there is rare earth in China.” What does this statement mean? We know that oil is crucial for modern civilization – this is no secret. Oil gets a lot of media attention, and it affects the consumer at the pump. Although there are other players, the Middle East clearly leads this sector with approximately 40% of the current world production total. We felt the power of Middle East domination and control during the 1970s with long gas lines, shortages and price hikes. OPEC, with varying degrees of success, tries to maintain price control in the marketplace today. Oil is clearly a strategic resource, and it is problematic that the Middle East controls so much of it – however, the situation with rare earth elements (REE) is far more dramatic and concerning.

What relevance do rare earth elements have in present society?



Imagine your world without:

*iPod

*laptop computers

*TVs

*cell phones

*modern transportation



Now picture the medical field without:

*magnetic resonance imaging (MRI)

*computed tomography (CT) scans

*contrast agents that enhance the images

The military requires rare earth in a significant way as it has become increasingly reliant on its widespread use: *range detectors *lasers*advanced aircraft materials*guided missiles*smart bombs*protective coatings

*blast protection



All of the above are dependent on REE. Rare earths are giving the research scientists, computer developers, and military commanders capabilities only dreamed of a few decades ago, and are proving to be an absolutely essential component in shaping modern and future technology.

Magnetic refrigeration, made possible by REE magnets, will soon allow for huge leaps in efficiency. Hybrid cars will each require anywhere from 20-80 pounds of rare earth materials. The future of computing technology is dependent on rare earth magnets and the miniaturized disk drive. These are just a few of the 100s of uses for rare earths.

Now for the scary stuff:

China currently produces approximately 97% of the world’s supply of REE. Based on the above uses, rare earths give China an overwhelming advantage in technology both now and in the future. Perhaps this wouldn’t be so devastating if China simply exported the stuff for profit like many resource-rich countries. Quite the opposite – the Chinese unmistakably understand the strategic value of rare earths and have been positioning themselves for years take full advantage of the situation. Chinese President Jiang Zemin made the following statement during his 1999 visit to the rare earth rich Baotou region of China, “Improve the development and applications of rare earth, and change the resource advantage into economic superiority.” According to the US-China Economic and Security Review Commission, since the early 1990s Beijing has commenced a “detailed strategy to control the rare earth market”. China has done more than just talk – they dropped their prices to cost (driving other world mines out of business), hired between 1000 and 2000 dedicated rare earth scientists, built the world’s most massive REE devoted research facilities, dramatically increased their own consumption, and have begun to cut exports.

Some US officials are aware of the problem, but the US has neither a detailed strategy nor the initiative and resources to contend with this current predicament.

Currently the US imports 100% of its rare earth resources (95% from China) and has no stockpile. The US can’t really get tough with China while they control such a vital resource. There just aren’t many options available. The US used to have a rare earth mine at Mountain Pass, California, but it was closed a few years ago. It’s not like we can just open it back up and process the elements into concentrated form.

The Attempted Takeover of Unocal by Chinese CNOOC Wasn’t A

[cantab]

Donnie, interesting that Chevron acquired Mountain pass in California in 2005 as part of Unocal. Chevron say they operate an open pit rare earths mine at Mountain Pass. This conflicts with statements 'out there' that Mountain Pass is closed. Perhaps it only operates at limited capacity. Does anyone out there know? The question is with a major shortfall in some rare earths looming can supply suddenly be switched on because of much higher prices caused by increasing demand at the same time that the Chinese impose production and export quotas and export tarrifs?

http://www.chevron.com/about/our_businesses/mining.asp

Further to the company's response to the speeding ticket, the ASX asked Lynas further questions about who knew what and when. The ASX received a complaint.

It will be interesting to see what happens when the big seller runs out of the shares they received in the placement at 31c. Today's announcement shows 22m shares to go - they started with 65m shares on 11/8/06. Goldman Sachs and JP Morgan Chase still own 22% of LYC

I have owned my shares for 14 months and IMHO the future looks bright just like CFL's. In a few years time it wont be possible to buy an ordinary light bulb in NZ, OZ or Europe as a result of recent announcements.

[cantab]

Lynas up 10% in Frankfurt on volume of 5m shares.

[cantab]

China which produces 95% of world supply of rare earths has only 15 years reserves remaining based on current production rates and economic growth rates. No wonder then that the Chinese government has imposed production and export quotas and more recently export tarrifs. This is a strategic resource and a competitive advantage for China. For some of the rare earths, such as those used for powerful magnets, there is no known substitute.