Molycorp Inc. (NYSE: MCP) is surging higher on reports that Sumitomo is considering a stake in the company. The move would be a game changer even if it is not lacking in surprise. Now that China has made waves in the rare earth elements and rare earth oxides after limiting exports and after the looming ‘classified’ materials status in 2011, the cost of acquiring and securing rare earth elements may matter far less than actually getting steady REE/REO supplies ahead.
China supplies what is widely reported as being in the vicinity of 95% of the REEs/REOs for the world. What makes Molysorp so interesting and unique is that it has proved reserves and it did have operations that had been halted years ago in the materials. It operates the Mountain Pass mine, a non-Chinese rare earth deposit here in the United States.
Rare Element Resources Ltd. (AMEX: REE) is up with Molycorp today even if it considered far more speculative even by speculators. Its shares are up over 13% at $11.17 while Molycorp shares are up over 16% at $32.34. These stocks have become very big cult stocks around the rare earth trends of late.
Market Vectors Rare Earth/Strategic Metals ETF (NYSE: REMX) is higher as well on the rumors.
China supplies what is widely reported as being in the vicinity of 95% of the REEs/REOs for the world. What makes Molysorp so interesting and unique is that it has proved reserves and it did have operations that had been halted years ago in the materials. It operates the Mountain Pass mine, a non-Chinese rare earth deposit here in the United States.
Rare Element Resources Ltd. (AMEX: REE) is up with Molycorp today even if it considered far more speculative even by speculators. Its shares are up over 13% at $11.17 while Molycorp shares are up over 16% at $32.34. These stocks have become very big cult stocks around the rare earth trends of late.
Market Vectors Rare Earth/Strategic Metals ETF (NYSE: REMX) is higher as well on the rumors.
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