Rubicon Minerals (RBY) Signals Positive Reversal

August 19, 2010


After reaching historic highs of $5.24 set in January 2010, shares of Rubicon Minerals (RBY) yesterday showed clear signs of reversing a 7-month downtrend. RBY smashed through a key resistance level, potentially ushering in the next round of positive momentum that could lead to new highs in the intermediate term. However, prices must close this week well above $4.00 for evidence of such confirmation.



The recent bullish action followed the widely distributed (via Wall Street Journal) announcement that Dundee Securities re-initiated coverage of RBY with a price target of C$5.40 and moreover, Rubicon's latest results from ongoing drilling at its flagship property at Red Lake, ON.

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Rare Earths Supply Concerns Make Miners More Attractive

August 10, 2010


Rare earths metals may not be precious, but they're so rare that a single country, China, produces 90% of the world's total supply. Rare earths metals include scandium, yttrium and the 15 lanthanides which often occur naturally with large deposits of niobium (a substitute for steel) and tantalum (a substitute for platinum).

The metals are vital components in a range of high tech items from military missile guidance systems to automotive hybrid batteries. The popularity of hybrids has exploded and Toyota plans to double its production of its hybrid, the Prius, to 1 million units within the next year. Korean and Chinese automakers also expect to boost hybrid production substantially in 2011, placing further strains on the world's rare earths supply.

Unfortunately for the rest of the world, China recently decided to significantly reduce its output. Last month, officials announced a 72% reduction in rare earth metals exports in the second half of 2010. The move triggered a dispute with the US which charges China with hoarding these increasingly necessary metals. Chinese officials claim exports must be cut in order to meet the country's growing needs.

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