Quelle: AgoraFinancial · 1. Mai 2014
"Key Rare Earth Play Could Double This Summer"
Dear Wealth Trader:
If you follow "tech" investing, big names like Google, Twitter and Facebook sold down hard in the past few weeks. Why? Perhaps investors were booking gains, if not stealing a march on the old "Sell in May, Go Away" idea. Who knows why markets do what they do?
Then again, there's tech and there's tech.
That is, we have tech in this newsletter, too. But not all tech plays are big-name, sexy vaporware guys -- with server farms, fast packet switching routers, social media apps and such.
Some make real things of value.
In particular, I refer to companies in the technology metal biz., which includes all manner of exotic elements from the Periodic Chart, to include the rare earth (RE) elements, also called Lanthanides.
One company we follow has great news in the pipeline. The play is under-covered in the media and trade press, but its news flow is strong and important. I expect the market to catch up to this idea in the next few months, and when it does this company’s share price could double (or more) over the coming summer. Interested? Read on...
Not Vaporware; This is Serious Chemistry!
Why is this tech company unlike Twitter, Facebook, etc.? Because, it deals in rare earth metals.
Without critical RE metals, in amounts large and small, chip-makers can't make chips; magnet-makers can't make magnets; hand-held device makers can't crank out iPhones and iPads; and much more. Basically, absent tech metals -- especially RE -- the rest of "tech" comes to a hard, screeching stop.
For this reason, I made sure we had RE element developer Ucore Rare Metals (UCU: TSX-V) in our RWT portfolio. Ucore holds mineral claims at a place called Bokan Mountain, in "hard rock" mining country near Ketchikan, Alaska. If you've ever been on the "cruise ship" route, at the southern panhandle of the state, you sailed right past it.
At Bokan Mountain, we're talking about high grade ore; it's rich in "heavy" RE elements that go into electronics, magnets, lighting phosphors and such.
Ucore mining claims at Bokan Mountain, Alaska.
In most cases, one of the big issues in the RE space is "wet chemistry" necessary to pull saleable elements out of an array of strange minerals. Really, the RE biz is NOT like classic old gold, silver or copper mining. In fact, rocks and minerals with RE are nearly science fiction when it comes to extracting the money-makers.
In the past five years, many companies have come and gone from the RE investment space. At one point, I counted over 150 investable ideas on exchanges from London and Frankfurt, to Canada, to Hong Kong and Australia. Some ideas were better than others, to say the least.
Many or few, however, I always liked Ucore. I met Ucore management in 2010, and immediately came away impressed by the collective sense of vision. Even better, Ucore employed great technical people. Of course, I liked the rocks and ore. Plus, there's that superb location at Bokan Mountain, Alaska, right next to deep-water harbor access.
Aside from the natural resource angle, and the positive mining-mentality, Ucore was foresighted when it came to investing in the next generation of "chemistry," to extract RE materials. Indeed, Ucore put good money into several breakthrough approaches to wringing the RE out of complex, post-mining solutions. Long story, but a great tale.
I won't bury you in detail, but not long ago, I sat down and spoke with Ucore's top technical guy, Ken Collison, chief operating officer. Ken is one of the best mine-builders ever to come out of Canada -- and there have been some great ones, to be sure. Ken had plenty to say in a 12-minute discussion, available on YouTube. It's a nice mix of discussion, with many stunning shots of the Ucore operating area. Take a few minutes and watch.
More recently, just this past week, Alaska's legislature unanimously approved $145 million in bond funding for Ucore's RE development program. And when was the last time you heard of any legislature, anywhere unanimously approving funding for a mine project? Talk about the "northern stars" aligning?
Alaska government backing will cover about 2/3rds of the anticipated capital cost for Ucore to build "surface" facilities -- such as roads, piers, processing plant and more. Even better, Alaska funds are long-term, low-interest money, which dramatically improves the economics of the Bokan Mountain development.
Looking ahead, as summer progresses, I expect more news from the Ucore development pipeline. This will include positive progress on the pilot plant that Ken Collison and I discuss in the video, linked above.
Also this summer, I expect to learn more technical details of Ucore's RE chemistry process, which has been under wraps for competitive reasons. Still, all things have their time and we're getting to where management has to show some serious cards to the outside world. I believe that, when Ucore opens up with its capabilities, we'll enjoy some significant, market-moving days.
Right now, Ucore shares trade in the 37-cents range -- a solid buy at these levels. Accumulate a position, but be patient. Don't get greedy. Ucore has a small cap share structure, so a surge in buying will kick the share price into higher gear. Use limit orders, of course, and "ladder" the offer price. If your orders don't fill on one day, do not be disappointed; there's always tomorrow. Plus, don't tail-chase shares upwards into the stratosphere. Accumulate over time, buying dips and down-days.
By the fall, I believe we'll know much more about Ucore... as will the market. Ucore will establish itself as a valuable company with a viable mining and processing program. As a shareholder, you'll be sitting on nice gains. With Ucore, we're dealing with a fine, junior-level mining and extraction company.
Over time, Ucore can take you far towards your investment goals.
That's all for now. Thanks for subscribing to RWT. Have a good weekend.
Best wishes...
Byron W. King
https://twitter.com/AgoraFinancial
http://agorafinancial.com/2014/05/01/...lay-could-double-this-summer/ |
