Avalon Rare Metals (NYSEMKT:AVL)
A Canadian mineral exploration and development company with a primary focus on the rare metals and minerals.
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Takeover target for expanding REE industry.
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Magnetic materials are going to be used more than ever in the next several years. Magnetic usage is going to become the new "gold" as far as security in investing. Just an educated guess based off of some research that's floating around circles.
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Growing worldwide demand from the average joe on the street , to private sector business's and government agencies around the world. China's monopoly ending. Having the enough of the right supply/product to be a world class provider, and being one of the few companies in the advanced stages of development and the only company developing their own seperation plant for HREE. and when pricing stabilizes, business's and investors will find it easier to account for risk in this growing market/sector and have no need to look for alternatives.
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I believe the logistics will play a postitive role, east verses west.
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This company has the data to support a bigger market cap in the mining sector.
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I think over five years this is a hot bet.
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3 to 5 days
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Rare Earth Element speculative play; AVL appears on track to start producing REE's a year or so after MCP and Lynas Corp. AVL is down around 25% in the past month (admittedly after a good run-up), so it may be primed for the next leg up in the REE story. AVL has also reported a higher proportion of "heavy" REE's than LYSCF or MCP.
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Another rare earth player.
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I like Avalon because it owns, with the Nechalcho deposit, a huge amount of rare earth metals.
Rare earth elements can be divided into two classes - "light" and "heavy" rare earths. The heavy ones are more rare and more valuable. The Avalon deposit contains high concentrations of heavy rare earth elements in contrast to the the Mountain Pass deposit owned by Molycorp, which contains only light rare earth elements.
I think Avalon might be a potential takeover candidate due to its heavy rare earth metals. It would seem to me like the Avalon deposit would complement the Molycorp deposit very well, for example.
Also, Avalon's Nechalcho deposit contains very little radioactive Thorium. Some rare earth deposits owned by other companies contain large amounts of Thorium, which makes rare earth metal extraction dirtier, more costly, and more difficult.
On the other hand, I have no idea how to estimate the value of the company because they are not producing yet.
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Large proven rare earth metal deposits
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There are several excellent post oh this stock already. Most people don't know that the rare earth metal neodymium is used in the huge magnets in the generators of wind turbines. Without secure sources of this mineral, the wind farm business could come to a complete stop.
I would like to add a qhote from Jack Lifton's 4/29/09 article on resourceinvestor.com "Wind Power Organizers Challenged"
"... the fact that the supply of all of the rare earths, including neodymium, from the PRC is being reduced each year by the Chinese as China’s domestic demand for rare earth metals increases steadily, and is, in fact, expected to exceed China’s production levels by 2013 at which point there could be no rare earth metals available for export or for use in products made in China to be exported."
Buy it and hold it. I think the price has cooled off now for purchasing.
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