Rare Earth Stocks Jump With Molycorp (MCP, REE, AVL, SHZ)
Shares of rare earth material group are trading sharply higher on Tuesday lifted by strong earnings China’s largest rare earths producer, Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co.
The company reported that it revenue soared 119.30% 11.53 billion yuan in 2011. Moreover net earnings surged 363% s to 2.87 yuan a share. The company remarked that the favorable regulatory decisions by china government boosted the company’s earnings. However, The company cautioned, that retreating prices in the second half of 2011 showed no signs of rebounding.
Meanwhile, the company said it expects new competitors in the international market as resource exploitation picks up in Australia and the United States.
The nation’s state broadcaster, China Central Television, reported last week that authorities may increase punishments for over production of rare earths. China will also push the formation of large rare-earth enterprises and also announce requirements for entering the industry, CCTV reported March 20, citing the Ministry of Industry and Information Technology.
Molycorp, Inc. (NYSE:MCP) is the biggest percentage gainer and soared over 10% to $32.70 on hefty volume. Molycorp had posted strong FY 2011 results last month and managed to survive a tough Q4 for the rare earth sector, and also confirmed that the company still expects to hit its 2012 ramp up plans ahead of schedule.
Rare Element Resources Ltd. (Canada)(NYSEAMEX:REE) added 8.62% to $6.55 on heavy volume, Avalon Rare Metals (NYSEAMEX:AVL) climbed 4.04% to $3.09 and China Shen Zhou Mining & Resources Inc. (NYSEAMEX:SHZ) rose 3.42% to $1.51.