From an investor perspective, the company eliminated a substantial portion of risk when it entered into a memorandum of understanding with Toyota Tsusho (TSE:8015). The auto manufacturer underlined its intent to fast track the deposit into production and eliminated future uncertainty by signing an offtake agreement to purchase 100 percent of the project's mixed rare earth oxide concentrate. It also agreed to provide the project with technical assistance and to arrange financing through to production.
While nothing has changed in relation to the project's worth or customer relationship with the Asian manufacturing giant, the company's share price has plunged over the past 12 months on the back of an overall REE market decline. Matamec's stock is currently trading at $0.17 — well below its 52-week high of 47 cents. It has 120,300,186 shares outstanding and a market capitalization of $18,640,000.
Stans Energy (TSXV:HRE) is a resource development company focused on developing HREE properties in the former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine. Kutessay II is the only past-producing HREE mine in the world outside ofChina.
The mine produced the vast majority of the former Soviet Union's REEs until 1991 and still benefits from good infrastructure and electrical power onsite from its past-producing days. The company also owns the related Kashka rare earth processing facility and rail terminal and has optioned the existing mill.Why this stock is appealing: Although the project does not boast the highest-grade product on the market, it is an open-pit project, and with all the infrastructure already in place, Stans' capital costs will be considerably less than those of its competitors. One of the greatest attributes of this project is that the metallurgical aspects of the project had already been deciphered by the time Stans took over. Stans has completed a JORC-compliant mineral resource estimate as well as a supplementary REE distribution report that identifies the primary commercial components of the open-pit mine.