Molycorp (MCP) Primed to Pursue Acquisitions as China Cracks Down (AVL)
Tweet
Share
E-mail
Get Alerts MCP Hot Sheet
Join SI Premium – FREE
Molycorp Inc. (NYSE: MCP) shares have tripled since its U.S. initial public offering in July and could now be primed for the pursuit of acquisitions, as China continues to place controls on rare-earth metals.
Possible targets for the largest rare-earth deposit company in the U.S. include Great Western Minerals Group Ltd. and Ucore Rare Metals Inc., while Canada's Quest Rare Minerals Ltd. and Avalon Rare Metals Inc. (AMEX: AVL) may also be targeted by Molycorp.
Ucore, based in Halifax, Nova Scotia, could attract suitors for its Alaska mine that contains heavy and light rare-earth materials.
Rare-earth metals have become increasingly coveted in a rapidly expanding technology market. Rare-earth elements are 17 chemically similar metals,
such as lanthanum, neodymium and dysprosium, which are used products ranging from cell phones to electric cars.
Prices for some rare-earth metals rose as much as 700 percent last year, while the Bloomberg Rare Earth Mineral Resources Index of 14 companies has surged 273 percent since July 8.
The deposits in the western mountain region of the U.S. are still being explored and it may take as much as 15 years to bring to full operation.
Great Western has a market cap of $308 million, Ucore is at $157 million Canadian.
“We are not aware of anyone looking at us as a takeover target,” Gary Billingsley, chairman of Great Western, said.
Shares of Molycorp are up 3 percent to $50.90 in premarket trade on Monday, while shares of Avalon are up up 6.27 percent to $7.80.
Possible targets for the largest rare-earth deposit company in the U.S. include Great Western Minerals Group Ltd. and Ucore Rare Metals Inc., while Canada's Quest Rare Minerals Ltd. and Avalon Rare Metals Inc. (AMEX: AVL) may also be targeted by Molycorp.
Ucore, based in Halifax, Nova Scotia, could attract suitors for its Alaska mine that contains heavy and light rare-earth materials.
Rare-earth metals have become increasingly coveted in a rapidly expanding technology market. Rare-earth elements are 17 chemically similar metals,
such as lanthanum, neodymium and dysprosium, which are used products ranging from cell phones to electric cars.
Prices for some rare-earth metals rose as much as 700 percent last year, while the Bloomberg Rare Earth Mineral Resources Index of 14 companies has surged 273 percent since July 8.
The deposits in the western mountain region of the U.S. are still being explored and it may take as much as 15 years to bring to full operation.
Great Western has a market cap of $308 million, Ucore is at $157 million Canadian.
“We are not aware of anyone looking at us as a takeover target,” Gary Billingsley, chairman of Great Western, said.
Shares of Molycorp are up 3 percent to $50.90 in premarket trade on Monday, while shares of Avalon are up up 6.27 percent to $7.80.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- SEC accuses ex-BofA senior banker Satsky of insider trading - Bloomberg
- DOJ, TikTok settle for $400m in children's privacy suit - Axios
- Apple Cuts Jobs in Siri, Vision Pro 3D Video and Gaming Teams - Bloomberg
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
