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.
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