LONDON, ENGLAND / ACCESSWIRE / April 2, 2015 / Today, mining analyst Stephan Bogner published a new research report on the most recent successes made by Commerce Resources Corp.: A few days ago, the positively surprising news was released that Commerce achieved at bench scale to reduce the consumption of key reagents in the flotation circuit by a staggering 80%. The operating expenditures (OPEX), which were already exceptionally low, should decrease significantly in the upcoming Pre-Feasibility Study (PFS) for the Ashram Rare Earth Deposit in Quebec.
The report includes an in-depth interview with Professional Geologist Darren L. Smith and Commerce Resources' President, Chris Grove. Both also answered partly harsh questions from readers of the Rockstone Newsletter.
The Graveyard of REE Projects Gets Crowded
A few days ago on Monday, March 30th, the REE space basically shrank by 2 companies, within 8 minutes between news:
Great Western Minerals Group Ltd. is unable to restructure $90 million bond. Frontier Rare Earths Ltd. announced a strategic review of its core activities. While GWG's share price crashed by 75% to $0.01, it seems likely to me that Frontier's upcoming PFS won't turn out too well; but at least management seems to be warning shareholders early.
Considering the most recent bad economic news for both Western REE producers (loss of $79 million USD for Lynas Corporation Ltd. and loss of $330 million USD for Molycorp Inc.), one does wonder what this space will look like in the future, if prices do not rebound significantly.
The Sole Ray of Hope: Commerce Resources Corp.
The upcoming PFS on the Ashram Rare Earth Deposit from Commerce Resources should turn out much better than expected. Already today, Ashram has probably the lowest OPEX of all major REE developing projects. Even at today's low REE market prices, Commerce should be able to produce highly profitable: (see figure 1 in PDF)
The projected operating margins of select REE development projects show clearly that Commerce is leading the pack being one big step ahead; e.g. die operating margins are almost twice as much as Ucore Rare Metals Inc.'s Bokan Mountain Deposit, which generates a margin lower than even Frontier Rare Earths Ltd.: (see figure 2 in PDF)
The full research report can be read via the following links:
English:
http://www.rockstone-research.com/images/PDF/Commerce10en.pdf
German:
http://www.rockstone-research.com/images/PDF/Commerce10de.pdf
The following REE companies were mentioned in the report:
1. Commerce Resources Corp.
2. Molycorp Inc.
3. Lynas Corporation Ltd.
4. Namibia Rare Earths Inc.
5. Tasman Metals Ltd.
6. Texas Rare Earth Resources Corp.
7. Ucore Rare Metals Inc.
8. Northern Minerals Ltd.
9. Avalon Rare Metals Inc.
10. Quest Rare Minerals Ltd.
11. Mkango Resources Ltd.
12. Hastings Rare Metals Ltd.
13. Matamec Explorations Inc.
14. Rare Element Resources Ltd.
15. Arafura Resources Ltd.
16. Frontier Rare Earths Ltd.
17. Peak Resources Ltd.
18. Great Western Minerals Group Ltd.
Disclaimer:
The author, Stephan Bogner (Dipl. Kfm., FH), owns shares Commerce Resources Corp. and thus would profit from a share price appreciation, whereas the author may sell those any time without notice. Neither Rockstone Research Ltd. nor the author was remunerated or instructed by Commerce Resources Corp. to produce or publish this content. Please read the full disclaimer within the full research report and on www.rockstone-research.com as another conflict of interest exists with Zimtu Capital Corp. and none of this content is to be construed as a "financial analysis" or "investment advice" but rather as advertisement.
SOURCE: Rockstone Research Ltd.
