As I read through the prospectus, if the overallotment option is exercised, I got to believe this is good news. If they needed funding for the completion of the work program at Bear Lodge, this might actually turn out to be a positive thing. I know they are called rare earth elements, but could a larger than expected gold grade push this issue alot higher? Shorts could get burnt to a crisp on this one if....
The chinese and indians will suck the earth dry of all natural resources. In 10 yrs the company that owns these kind of mines could skyrocket to the moon. Imagine what happens if they find some decent gold assays on the properties?
Well I like energy stocks as well as the miners. Energy just might be an even better play at this point in the cycle. Are there any energy oil or oil service stocks that are rising just like REE?
And MCP says it's in a position to provide the US with most of it's PROJECTED needs. Regardless, the entire RE market is in a speculative bubble.
All RE companies are inflated and all will come down, when the unsubstantiated hype around electric cars and windmills fades, whether they have legitimate operations like MCP & Lynas or just smoke and mirrors like REE.
It is a very good thing for a company that is trading well above book value to do a secondary. MCP should do one also. It doesn't make this worth $10, but it does make it worth more than it was before the secondary.
Not sure that BV really has anything to do with the valuation. It is strictly based on the value of the assets in the ground. There was some talk about even finding gold there. In the past, several miners walked and balked from these mines. So it still appears to be a long shot but with gold prices and rare earth elements prices increasing, perhaps in 5 years there will be some value to the properties or the right to the properties. Ain't a hard core miner so perhaps somebody with better mining intelligence can comment please.