Shares of Canadian Rare Earth Companies Collapse; Includes Neo Material Technologies on TSX, Ucore on TSXV
Shares of Canadian rare earth companies, including Neo Material Technologies (NEM.TO) and Ucore Rare Metals Inc. (UCU.V), fell on Tuesday amid concerns that demand from No. 2 consumer Japan may collapse following the earthquake and tsunami that hit the country.
"Rare earths are down because everybody is spooked about Japanese headlines in terms of the potential nuclear meltdown and they are worried about the demand," Fraser Mackenzie analyst Dev Bhangui is quoted as saying in a Reuters file.
Reuters says Japanese firms consume about 30,000 tonnes a year of rare earth minerals to produce mobile phones, electric car motors, high-tech electronics parts and batteries.
Shares of Neo, which gets almost a fifth of its revenue from Japan, were down about 4% at $7.56 on the Toronto Stock Exchange, adding to the 7% dropped Monday. Over on the TSX Venture Exchange, UCU was down 18% at 80 cents.
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