Ottawa Investment Advisor John Bruce

Rare-Earths Controversy Brewing

October 27, 2010

The following is an article on rare-earths I think you’ll find valuable to read. If you’re wondering whatrare-earths are, I covered the topic in an earlier article here.

Factbox: Winners & losers from China rare-earths controversy

SYDNEY | Wed Oct 20, 2010 9:59am EDT (Reuters) – China has curtailed exports of rare earths, causing offshore consumers to consider alternative supply sources for the minerals which are used in everything from TV screens and computers to mobile phones and toys.

China supplies about 95 percent of the world’s rare earths.

Following is a list of winners and losers if China’s rare earths exports dry up:

Follow this link to continue reading the rest of the article.

John S. Bruce
Ottawa Investment Advisor
Also licensed in ON, BC, AB, QC, NS
Mackie Research Capital
Direct Line- 613-425-3732
Toll Free- 866-860-4190

The opinions, estimates and projections contained herein are those of the author as of the date hereof and are subject to change without notice and may not reflect those of Mackie Research Capital Corporation (“MRCC”). The information and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this report or its contents. Information may be available to MRCC which is not reflected herein. This report is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. Member-Canadian Investor Protection Fund / member-fonds canadien de protection des épargnants.

Mackie Research Capital Corporation (MRCC) makes no representations whatsoever about any other website which you may access through this one. When you access a non-MRCC website please understand that it is independent from MRCC and that MRCC has no control over the content on that website. The content, accuracy, opinions expressed, and other links provided by these resources are not investigated, verified, monitored, or endorsed by MRCC.

What Are Rare Earths?

October 22, 2010

You will always hear this mantra when seeking to invest your money, “Buy low, and sell high”. This is good advice, however it is only good when it happens! The question that should be asked is, “What can I buy now, that others will pay more for later?” If I knew that I would own an island in the Caribbean by now. Every now and then though, an occurrence happens globally that gives a higher probability of getting a hint of what may be the next valued commodity. That is happening right now!

The following article I believe will be of interest to you. If you wish to know more and want to find out how this may fit into your investment strategy, call me asap. Time waits for nobody, and this move has just started!

FACTBOX-What are rare earth elements?

2:24 PM Eastern Daylight Time Sep 24, 2010

Sept 24 (Reuters) – Rare earth elements are used in a wide range of consumer products, from iPhones to electric car motors.

Rising tensions between China and Japan over an embargo on rare earth elements may spell good news for miners looking to fund projects outside of China.

Here are some facts on this elusive group of 17 metals:

WHAT ARE RARE EARTHS?

Lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, yttrium.

WHAT ARE RARE EARTHS USED IN?

Rechargeable batteries for electric and hybrid cars, advanced ceramics, magnets for electric car motors, computers, DVD players, wind turbines, catalysts in cars and oil refineries, computer monitors, televisions, lighting, lasers, fiber optics, glass polishing, superconductors, and weapons.

THE iPHONE CONNECTION

Rare earths make for smaller, lighter batteries and motors. The drive to miniaturization was first popularized by the Sony Walkman personal cassette tape player. Rare earths are now key to making handheld devices like Apple’s iPhone and Research In Motion’s BlackBerry.

BIGGEST CONSUMERS

China uses 51 percent of the world’s rare earths, while Japan uses 17 percent. Global demand is forecast to grow rapidly as demand for green products increases.

BIGGEST PRODUCERS

China produces over 90 percent of global supplies. China mined 120,000 tonnes in 2008. Molycorp in California produces 3,000 tonnes per year, while Silmet Rare Metals in Estonia produces 2,400 tonnes per year. There are small amounts of rare earths mined in India, Malaysia and Brazil.

BIGGEST DEMAND

The demand for dysprosium, terbium, neodymium, praseodymium and europium is set to grow by a minimum of 8 percent a year. Electric vehicle demand for dysprosium, neodymium and praseodymium is set to grow by an average of 790 percent in the next five years.

Sources: U.S. Geological Survey, company web sites, Byron Capital Markets (Reporting by Julie Gordon; Additional reporting by Steve Gorman and Sonali Paul; Editing by Michael Perry and Paul Tait) ((julie.gordon@thomsonreuters.com; +1 416 941 8136; Reuters

Copyright © 2010 (C) Reuters 2010. All rights reserved.

If you have any questions as to how position yourself to capture this potential opportunity call me toll-free at: 1-866-860-4190.

John S. Bruce
Ottawa Investment Advisor
Also licensed in ON, BC, AB, QC, NS
Mackie Research Capital
Direct Line- 613-425-3732
Toll Free- 866-860-4190

The opinions, estimates and projections contained herein are those of the author as of the date hereof and are subject to change without notice and may not reflect those of Mackie Research Capital Corporation (“MRCC”). The information and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this report or its contents. Information may be available to MRCC which is not reflected herein. This report is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. Member-Canadian Investor Protection Fund / member-fonds canadien de protection des épargnants.

Mackie Research Capital Corporation (MRCC) makes no representations whatsoever about any other website which you may access through this one. When you access a non-MRCC website please understand that it is independent from MRCC and that MRCC has no control over the content on that website. The content, accuracy, opinions expressed, and other links provided by these resources are not investigated, verified, monitored, or endorsed by MRCC.

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