What are the top Canadian rare earths stocks? These companies on the TSX and TSXV have performed the best so far this year.
The high-strength REE magnets found in much of today’s essential technology, including smartphones, wind turbines and electric vehicles, account for 29 percent of rare earths consumption. Analysts expect that demand for magnet rare earths — neodymium, praseodymium, dysprosium and terbium — will continue to rise alongside demand for these technologies over the next decade and beyond.
Rare earths companies listed on the TSX and TSXV offer exposure to non-Chinese rare earth resources, and may be a compelling choice for investors who are bullish on the future of this interesting market.
But what are the top Canadian rare earth stocks? Here the Investing News Network looks at the TSX- and TSXV-listed REE companies with the biggest gains so far this year. This top Canadian rare earth stocks list was compiled using TradingView’s stock screener, and data was gathered on April 1, 2021. All companies mentioned had market caps of at least C$10 million at that time.
1. Search Minerals (TSXV:SMY)
Year-to-date gain: 253.85 percent; current share price: C$0.23
Search Minerals controls a 63 kilometer long and 2 kilometer wide belt in the emerging Port Hope Simpson – St. Lewis critical rare earth elements district in Southeastern Labrador.
The company has completed a preliminary economic assessment for the Foxtrot deposit, as well as a resource estimate for the Deep Fox deposit. Search is also working on three exploration prospects along the belt: Fox Meadow, Silver Fox and Awesome Fox.
In March, Search completed a C$1.75 million financing that included the participation of USA Rare Earth, a funding and development partner for the Texas-based Round Top heavy rare earths, lithium and critical minerals project. The two companies have an agreement to work on several initiatives, including the potential separation, marketing and offtake of Search’s future production.
2. Avalon Advanced Materials (TSX:AVL)
Year-to-date gain: 81.82 percent; current share price: C$0.20
Avalon Advanced Materials holds a number of advanced-stage rare earths and critical metals projects, including the Nechalacho REE project in Canada’s Northwest Territories.
In mid-February, the company announced an agreement to acquire the right to the title of a closed mine site in Ontario with rare earths recovery potential. Avalon’s assets also include the Separation Rapids lithium project near Kenora, Ontario, and its Lilypad cesium-tantalum project in Northwestern Ontario.
3. Defense Metals (TSXV:DEFN)
Year-to-date gain: 60 percent; current share price: C$0.40
Defense Metals is focused on the acquisition of REE deposits to develop green technology and defense technologies. Its Wicheeda REE project, located 80 kilometers northeast of Prince George, British Columbia, has an indicated mineral resource of 4,890,000 tonnes averaging 3.02 percent light rare earth elements (LREO), and an inferred mineral resource of 12,100,000 tonnes averaging 2.9 percent LREO.
In both mid-February and early March, Defense Metals announced new results from pre-pilot hydrometallurgy test work on Wicheeda flotation concentrate; they show that high impurity removal can be achieved with minimal REE losses.
Year-to-date gain: 45.61 percent; current share price: C$0.42
Rare earths technology company Medallion Resources has developed a proprietary process to achieve low-cost, near-term production of REE magnet metals by exploiting monazite — a rare earth phosphate mineral that is a by-product of mineral sand mining operations.
In February, Medallion secured exclusive rights to Purdue University’s rare earths separation and purification technology, which according to the company will complement its existing business focus.
5. Geomega Resources (TSXV:GMA)
Year-to-date gain: 23.08 percent; current share price: C$0.40
Geomega Resources describes itself as a developer of innovative technologies for the extraction and separation of rare earths and other critical metals. The company’s main project is based around Innord’s separation of rare earths technology. It also owns the Montviel rare earth carbonatite deposit in Quebec.
Midway through January, Geomega completed testing and optimization at its rare earths pilot plant in Quebec, saying that it expects 2021 to be a “transformational year” with the upcoming construction of a demonstration plant. In early February, the company signed a letter of intent to recycle production waste containing rare earths from Everwin Technologies’ future production facilities.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Medallion Resources is a client of the Investing News Network. This article is not paid-for content.