Markets

Most -- But Not All -- Rare Earth Miners Lower After Sector Booster Urges Caution

Shares of many rare earth element miners are lower today after J.P. Morgan analyst Michael Gambardella reportedly downgraded a sector heavyweight contending that a recent run-up and subsequent drop in rare earth prices largely has been fueled by speculators.

Gambardella cut his rating for Molycorp ( MCP ) to Neutral from Overweight and also pared his price target 37% to $66 a share for the stock following a 48% drop in celium prices since July along with a 36% slide for lanthanum and a 22% decline in neodymium prices. Bottom line, he's "taking a more cautious stance," he wrote, sending Molycorp shares down as much as 15% in early trade today.

Other rare-earth miners listed on either the TSX or the TSX venture exchanges also are taking their lumps as well. They include:

Rare Element Resources Ltd (RES.TO) $7.34 -0.57 -7.2%

Avalon Rare Metals Inc (AVL.TO) $3.55 -0.24 -6.3%

Quest Rare Minerals Ltd. (QRM.V) $3.36 -0.34 -9.2%

Quantum Rare Earth Developments Corp. (QRE.V) $0.225 -0.005 -2.2%

The declines are far from universal, however, with Rare Earth Metals Inc. (RA.V) maintaining a 3.5% gain this mornings at 30 cents a share, up 1 cent, while Geomega Resources (GMA.V) is ahead over 5% at $1.79 a share in light-volume trade.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More