The Conversation (0)
Business Insider reported an interview with mining analyst John Kaiser on the outlook for rare earth firms.
Business Insider reported an interview with mining analyst John Kaiser on the outlook for rare earth firms.
As quoted in the market news:
The slamming of the rare earth stocks based on warnings that global growth is slowing and high prices are generating “demand destruction” is the reverse of the media hype that we had before. It has had a negative effect on the valuations of rare earth juniors, in particular the ones that are still in the process of developing a new supply. The pullback we saw in Molycorp was justifiable because Wall Street analysts had been fooled into taking a pretty high percentage of the rare earth free on board “quoted” export prices as real and plugged them into their cash-flow models. Now those astronomical export prices are coming down because China is releasing material back into the market.