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.Warwick Grigor ignited itResources Top 5: Rare earths stocks spark to life as China threatens export banMining19 hours ago | Reuben AdamsASX REE stocks surge on Chinese threat to throttle exportsSmall cap leaders in early trade Tuesday include Prospech, Australian Rare Earths, Peak Rare EarthsLabyrinth reports high grade 95,710oz resource at the historic Comet Vale project in WAThe ionic rare earths play caught a rocket after it was featured in a weekly column written by Far East Capital (FEC) analyst and founder Warwick Grigor.Grigor, a veteran broker/analyst who formed FEC with Andrew Forrest over 25 years ago, says China’s threat to ban exports again could mean “fun and games coming for the REE sector”.“A dispatch overnight said that China was considering banning exports of various rare-earth magnet production and process/refining technologies as a response to the US targeting the Chinese chip-making industry,” he says.“The last major official rare earth policy shift by Beijing saw NdPr prices skyrocket when exports to Japan were suspended in 2010, over the Senkaku Islands.”He highlights AR3, which flew out of the gates post 2021 IPO before falling back into the pack, as one to watch.The flagship Koppamurra project is big and getting bigger, with its 101Mt at 818ppm TREO resource bolstered by an exploration target of between 330Mt and 1.4 billion tonnes.“The market capitalisation of AR3 is a modest $23m but if you add the stock that is escrowed until June this year, this figure increases to $31m,” Grigor says.“Now that the hot air in the stock price has cooled down, it may be that the shares are very modestly priced as these levels for a company operating in a sound jurisdiction like South Australia, having achieved the progress already reported.“Traders might wait for a rare earths pricing signal before moving on the stock, but longer-term investors could get set at these levels without competing with hot money.”The AR3 share price is now at its highest point since August last year. It had just over $9m in the bank at the end of December.Large REE players making gains today on China speculation include Lynas (ASX:LYC), Arafura (ASX:ARU) and Iluka (ASX:ILU)."
.Warwick Grigor ignited it
Mining
19 hours ago | Reuben Adams
The ionic rare earths play caught a rocket after it was featured in a weekly column written by Far East Capital (FEC) analyst and founder Warwick Grigor.
Grigor, a veteran broker/analyst who formed FEC with Andrew Forrest over 25 years ago, says China’s threat to ban exports again could mean “fun and games coming for the REE sector”.
“A dispatch overnight said that China was considering banning exports of various rare-earth magnet production and process/refining technologies as a response to the US targeting the Chinese chip-making industry,” he says.
“The last major official rare earth policy shift by Beijing saw NdPr prices skyrocket when exports to Japan were suspended in 2010, over the Senkaku Islands.”
He highlights AR3, which flew out of the gates post 2021 IPO before falling back into the pack, as one to watch.
The flagship Koppamurra project is big and getting bigger, with its 101Mt at 818ppm TREO resource bolstered by an exploration target of between 330Mt and 1.4 billion tonnes.
“The market capitalisation of AR3 is a modest $23m but if you add the stock that is escrowed until June this year, this figure increases to $31m,” Grigor says.
“Now that the hot air in the stock price has cooled down, it may be that the shares are very modestly priced as these levels for a company operating in a sound jurisdiction like South Australia, having achieved the progress already reported.
“Traders might wait for a rare earths pricing signal before moving on the stock, but longer-term investors could get set at these levels without competing with hot money.”
The AR3 share price is now at its highest point since August last year. It had just over $9m in the bank at the end of December.
Large REE players making gains today on China speculation include Lynas (ASX:LYC), Arafura (ASX:ARU) and Iluka (ASX:ILU)."
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