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Rare Earth Investing
Top 3 Canadian Rare Earths Stocks (Updated May 2022)
May. 10, 2022 01:55PM PST
What are the top Canadian rare earths stocks? These companies on the TSX and TSXV have performed the best so far this year.
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Click here to read the latest top Canadian rare earths stocks article.
Although they usually get less attention than gold, copper and lithium, rare earth elements (REEs) are important metals for the global economy, especially in the 21st century.
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.
Currently, China is home to more than 60 percent of annual global rare earth metal production, which has led western nations to seek to secure alternative rare earths supply chains.
Rare earths companies listed on the TSXV and TSX 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 TSXV- and TSX-listed REE companies that have had the biggest gains during 2022. CSE-listed companies were considered but did not make the cut this time around. This top Canadian rare earth stocks list was compiled using TradingView’s stock screener, and data was gathered on May 3, 2022. Read on to learn about the top risers.
1. Marvel Discovery (TSXV:MARV)
Year-to-date gain: 106.67 percent; market cap: C$13.67 million
First on this list of top Canadian rare earth stocks is explorer Marvel Discovery, which holds a diverse property portfolio covering gold, nickel, platinum-group metals, rare earths and uranium. Its assets are located in many of Canada’s prolific mining jurisdictions, including Ontario, Quebec, BC and Saskatchewan.
One of these projects is the Wicheeda North rare earths project, which spans 1,444 hectares of claims in the Cariboo mining division of BC. The claim block adjoins Defense Metals' (TSXV:DEFN,OTCQB:DFMTF) Wicheeda rare earths project, which hosts an indicated rare earths deposit of 4.9 million metric tons.
Shares of Marvel Discovery hit their 2022 peak on April 29, reaching C$0.16 following the company’s completion of a private placement financing for C$400,000.
2. Avalon Advanced Materials (TSX:AVL)
Year-to-date gain: 45.45 percent; market cap: C$61.32 million
Toronto-based Avalon Advanced Materials has five projects across Canada focused on critical metals, including lithium, rare earths, cesium, tantalum, feldspars, tin and indium. Avalon is currently focusing on its Separation Rapids lithium project near Kenora and its Lilypad cesium-tantalum project near Fort Hope, both in Ontario.
The company also holds the Nechalacho rare earth elements property, located at Thor Lake in the Northwest Territories. According to the company, it has potential for economic recovery of REEs, lithium, zirconium, beryllium, niobium and tantalum. Avalon's share price hit its highest level in 2022 on April 5, reaching C$0.235.
3. Ucore Rare Metals (TSXV:UCU)
Year-to-date gain: 9.59 percent; Market cap: C$39.27 million
Ucore Rare Metals owns the Bokan-Dotson Ridge REE project in Southeast Alaska, and also has a focus on rare earths extraction, beneficiation and separation technologies. In addition to moving forward at Bokan-Dotson Ridge, the company wants to develop a heavy rare earths processing facility in the same area.
Shares of Ucore reached their highest point for 2022 on January 17, climbing to C$1.24.
More recently, Ucore shared the positive conclusions of a multi-phase independent technical review of the company’s RapidSX technology; it was prepared by Dr. Ahmad Ghahreman of AG Hydrometallurgy Services. The results of the review include three times efficiency versus CSX and an operating cost of 20 percent less than CSX. Ucore plans to commission its RapidSX demonstration-scale plant in mid-2022.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Avalon Advanced Materials and Marvel Discovery are clients of the Investing News Network. This article is not paid-for content.
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