The Mercenary Geologist sees an Americas-centric rare earth elements-processing cartel forming to create a supply chain independent of China and points to the top companies that could be big players in the next five years.
In 1970, the plant started production of rare earth and specialty metals products and uranium processing ceased in 1990 concurrent with the fall of the USSR. In 1997, the formerly state-owned plant was privatized.
The peripatetic Mercenary Geologist explains that even if all under-construction and planned nuclear facilities are suspended, not enough uranium is being mined currently to supply ongoing demand and reveals a number of companies poised to benefit.
Mineral commodities trade in four to seven year boom and bust cycles within longer 20- to 30-year secular market trends. Since starting work I have experienced the end of a 30-year secular bull market, a 23-year bear and a seven-years on-going bull.
The peripatetic Mercenary Geologist covers a lot of territory on a correction in gold, his still-hot rare earth elements (REE) favorites, the next REE juniors leader and what criteria he uses to evaluate the "best of the best" stocks.
If copper prices continue to go higher, we will see a negative impact on major industrial activity with increasing capital and operating costs. This scenario happened previously in early to mid-2008 before commodity prices collapsed.