Monthly Archives: December 2013

Are the Uranium, Graphite and Rare Earth Miners Ready To Breakout?

Are the Uranium, Graphite and Rare Earth Miners Ready To Breakout?
I have been carefully scouring the resource markets for exceptional opportunities over the past few months and indicated numerous times about the potential rebound and breakout in uranium, graphite, PGM's and rare earth mining stocks. At the end of October, I said to watch for a rebound in uranium as major volume accumulated shares of Uranium Participation Corp which has now just broken out into new nine month highs and made a bullish golden crossover of the 50 and 200 day moving average. In addition, I highlighted a few months ago to buy NYSE graphite bellwether Graftech and some of the high quality graphite miners. All these graphite stocks mentioned above have been breaking out on major volume this week as predicted. I also told you about increased M&A in the rare earths and graphite sector. Now Molycorp has just broken out on huge volume as even this giant could be a takeout target of Molymet as it trades below book value.
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U.S. Defense Department Conducting Research With Junior Rare Earth Miner

U.S. Defense Department Conducting Research With Junior Rare Earth Miner
The Pentagon just released an encouraging report that says that The West is making progress in breaking the Chinese Monopoly on heavy rare earths. The U.S. Department of Defense is hoping to build a domestic rare earth supply chain that can provide the rare earths for the military and industrial sector. Prices are basing indicating that the market believes that additional supplies of rare earths will come online. These critical rare earths are important for some of the top soaring stocks such as Apple, Tesla, Vestas, Raytheon, GM and Boeing. Closely watch the rare earth sector as the U.S. flies B-52 bombers into disputed zones with China. Escalating tensions may have major implications on the price of rare earth oxides in the West. China controls 99% of heavy rare earth production which is critical for the West’s latest military technologies. The Chinese just announced a major cut in heavy rare earth exports.
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Look For Leverage To Rising Gold Prices With No Expiration

Look For Leverage To Rising Gold Prices With No Expiration
The long term trend in gold remains higher and this correction may provide opportunities for precious metals investors to gain exposure to highly leveraged vehicles to the gold price. This stock is like an option on the gold price with no decaying time value or expiration. This asset is one of the largest undeveloped deposits in the world still 100% controlled by a junior. Hundreds of millions of dollars have been spent on this asset with 792 drill holes yet investors can purchase the company for around a $40 million market cap way below its book value.
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Uranium Bellwethers Outperforming S&P500 By Wide Margin in 2013 (CCJ, ARVCF, RIO)

Uranium Bellwethers Outperforming S&P500 By Wide Margin in 2013 (CCJ, ARVCF, RIO)
The recent low price in uranium which hit 8 year lows in 2013 may actually be the catalyst to look for higher grade and more economic uranium deposits in the Athabasca Basin in mining friendly Saskatchewan. Higher cost mines are being shut down or delayed, however new uranium discoveries are receiving a lot of attention especially in the Athabasca Basin which is the highest grade uranium mining district in the world. This low price in uranium is why Cameco, Rio Tinto and Denison have been buying junior uranium explorers in the Athabasca Basin trading at bargains. These assets are high grade meaning potentially lower production costs in a stable jurisdiction. Smart money knows nuclear power is here to stay as there are more reactors operating and under construction now post-Fukushima than from before the once in a millennium natural disaster.
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