Avalon Rare Metals AVL-TO – Rare Earth Elements Leader

by Olivier on June 3, 2009

Today I started a position in AVL.TO – Avalon Rare Metals. I am pretty much convinced that this is going to be the new leader in that sector. James Dines publisher of the Dines Letter has said Rare Earth Elements could be the next surprise bull market.

The Gold Report interviewed John Kaiser and this is what he said about AVL.TO Avalon Rare Metals:

TGR: Are there some specific rare earth or minor metals that investors should be aware of and, if so, what companies should they be looking at?

JK: There are very few companies that have any sort of meaningful resources that you can buy in the market. One that I follow is Avalon Rare Metals, Inc. (TSX:AVL), which has the Thor Lake deposit in the Northwest Territories.

They don’t mine anything yet. They’re doing all the pre-feasibility work to establish where the highest-grade zones of these rare earth oxides are in the system, and then they’ll start a mining scenario where they’ll initially produce enough to feed expected demand in the market. But the total resources are large enough so that this thing could operate for 50 years. So these types of projects with the very large resources are of enormous interest to the end users because, once these things get going, they’ll operate forever.

For a visual comparison of the different REE stocks check the REEs – Rare Earth Elements Sector Overview Chart on my public list.

This Avalon Rare Metals video gives you a good idea what the company is all about.


Have a great evening!

Previous post:

Next post: