Top Canadian Rare Earths Stocks

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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 (EVs), 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 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 TSXand TSXV listed REE companies with the biggest gains so far this year. CSE listed companies were considered, but none made the cut. This top Canadian rare earth stocks list was compiled using TradingView’s stock screener, and data was gathered on October 14, 2021. All companies mentioned had market caps of at least C$5million at that time.

1. Search Minerals (TSXV:SMY)

Year-to-date gain: 130.7 percent; current share price: C$0.15

Search Minerals controls a 63 kilometer long and 2 kilometer wide belt in the emerging Port Hope Simpson – St. Lewis critical REE district in Southeastern Labrador.

Search Minerals has completed a preliminary economic assessment (PEA) for the Foxtrot deposit, as well as a resource estimate for the Deep Fox deposit. In September the company commissioned a combined PEA for both the Deep Fox and Foxtrot projects. Search is also working on three exploration prospects along the belt: Fox Meadow, Silver Fox and Awesome Fox.

Earlier in the year, Search was selected to participate in Canada’s Accelerated Growth Service initiative, which includes coordinated access to government resources geared at helping the company move quickly to production. The purpose of the initiative is to the establish a stable and secure REE supply chain.

2. Mkango Resources (TSXV:MKA)

Year-to-date gain: 67.27 percent; current share price: C$0.46

Mkango Resources is developing new sustainable sources of REEs, including neodymium, praseodymium, dysprosium and terbium. The company’s goal is to supply demand from EVs, wind turbines and other clean technology markets.

Mkango’s assets include the 51 percent owned Songwe Hill rare earths project in Malawi, a 75.5 percent interest in Maginito and a 25 percent interest in UK rare earth magnet recycler HyProMag.

The company’s ongoing feasibility study at Songwe Hill is being funded through a 12 million pound investment by strategic partner Talaxis. Maginito is developing neodymium magnet recycling technologies alongside rare earth alloy, magnet and separation technologies. In September, Mkango commenced a geotechnical drilling and pitting program at Songwe Hill.

Earlier in the year, Mkango reported that its subsidiary Mkango Polska has joined with Grupa Azoty Pulawy (WSE:ZAP) to develop a rare earths separation plant in Poland targeting 2,000 tonnes per year of separated neodymium/praseodymium oxides, and 50 tonnes per year of dysprosium and terbium oxides in a carbonate enriched with heavy rare earths.

3. Marvel Discovery (TSXV:MARV)

Year-to-date gain: 61.54 percent; current share price: C$0.105

Explorer Marvel Discovery’s diverse portfolio includes gold, nickel, platinum-group metals (PGMs) and battery metals in the mining jurisdictions of Ontario, Quebec and Newfoundland. In May, Marvel spun out its REE properties into a new wholly owned subsidiary called Power One Resources.

These REE properties include the Serpent Rivers/Pecors nickel-copper-PGMs-rare earths project in Elliot Lake, Ontario, and the newly acquired Wicheeda North rare earths project in Prince George, BC. Wicheeda North encompasses more than 2,100 hectares located immediately northwest of Defense Metals’ (TSXV:DEFN,OTCQB:DFMTF) Wicheeda property, which has an indicated mineral resource of 4.89 million tonnes averaging 3.02 percent light rare earth elements (LREO), and an inferred mineral resource of 12.1 million tonnes averaging 2.9 percent LREO.

4. Avalon Advanced Materials (TSX:AVL)

Year-to-date gain: 56.25 percent; current share price: C$0.125

Avalon Advanced Materials has four advanced-stage projects targeting lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. The company is currently focusing on developing its Separation Rapids lithium project near Kenora, Ontario, and reactivating its 100 percent owned Lilypad cesium-tantalum project in Northwestern Ontario.

Avalon recently acquired the Cargill Carbonatite Complex in Ontario. The property hosts significant concentrations of various critical minerals. Analytical work on the tailings indicates the presence of significant concentrations of rare earths, scandium and zirconium.

5. Imperial Mining (TSXV:IPG)

Year-to-date gain: 50 percent; current share price: C$0.165

Completing our list of top Canadian rare earths stocks is Imperial Mining, an exploration and development company with a diverse portfolio of metals projects . Along with gold and copper-zinc properties, the company also holds properties in Quebec focused on various technology metals, including scandium, niobium and tantalum.

Imperial Mining recently released a maiden NI 43 101 resource estimate for the TG Scandium-Rare-Earth Zone, including indicated resources of 7.3 million tonnes grading 282 g/t Sc2O3 and inferred resources of 13.2 million tonnes grading 262 g/t Sc2O3. In October, the company announced that itself and partner FusiA Groupe were awarded more than C$2.6 million in funding for a scandium-aluminum material R&D project from a Federally-funded not-for-profit institution. The project is aimed at developing a vertically integrated supply chain for a scandium-aluminum alloy for 3D printing.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Marvel Discovery is a client of the Investing News Network. This article is not paid-for content.