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Great Western Minerals Group Ltd. is a Saskatchewan-based junior exploration company. GWMG is engaged in the acquisition, exploration, and development of rare earth mineral properties in North America.
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Message: Dramatic Downturn in Rare Earth Market Raises Concerns for Lynas Corp and GWMG

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Dramatic Downturn in Rare Earth Market Raises Concerns for Lynas Corp and GWMG

posted on Nov 28, 11 08:26AM

Dramatic Downturn in Rare Earth Market Raises Concerns for Lynas Corp and Great Western Minerals

The Paragon Report Provides Equity Research on Lynas Corp & Great Western Minerals Group

MarketwirePress Release: Paragon Financial Limited6 minutes

RELATED QUOTES

SymbolPriceChange
LYC.AX 1.1750 +0.0750

NEW YORK, NY--(Marketwire -11/28/11)- Rare Earth stocks have struggled in recent weeks as disappointing earnings reports from some of the industry's up and coming stars cooled optimism in the sector. Additionally, a dramatic downturn in demand for the metals has caused prices to slide. The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Lynas Corporation Limited (Pinksheets: LYSCF.PK - News) (ASX: LYC.AX - News) and Great Western Minerals Group Ltd. (TSX-V: GWG.V - News) (Pinksheets: GWMGF.PK - News). Access to the full company reports can be found at:

www.paragonreport.com/LYSCF

www.paragonreport.com/GWG

Rare earth prices have fallen dramatically in recent months. International prices for some light rare earths used in the polishing of flat-screen televisions and the refining of oil, respectively, have fallen as much as two-thirds since August. Lanthanum oxide, for example, was $5 a kilogram in early 2010. Lanthanum hit $140 a kilogram in July, then dropped more than fifty percent to $62 a kilogram in November.

A recent press release courtesy of Roskill Information Services explains that the downswing in prices is because buyers have reacted to rising export prices by staying away from the market and Chinese exports tumbled through the first nine months of the year.

The Bedford Report releases regular market updates on the industrial metals sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

According to Roskill Information Services, demand for rare earths is forecast to grow at 7-9% per year until 2015. Growth in the demand for neodymium and dysprosium in the manufacture of magnets will continue to be strong and could result in a supply deficit in 2015, the firm argues.

Through its wholly-owned subsidiary, Rare Earth Extraction, Great Western holds a controlling interest in the Steenkampskraal rare earth mine in South Africa. Presently the company is in talks to form a joint venture with China-based Ganzhou Qiandong Rare Earth Group, in order to build a rare earths separation plant in South Africa, to be located near the former-producing Steenkampskraal mine. In addition to its Steenkampskraal property, GWMG also owns four rare earth exploration projects throughout North America.

Lynas Corporation Limited, together with its subsidiaries, engages in the exploration, procurement, processing, and supply of rare earths products. The company holds interest in the Mount Weld project, which includes rare earths oxide deposits located to the south of Laverton, Western Australia.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer

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