---------- Forwarded message ----------
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Sat, Oct 20, 2012 at 7:08 PM
Subject: China's Rare Earth Monopoly Is Dead!
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From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Sat, Oct 20, 2012 at 7:08 PM
Subject: China's Rare Earth Monopoly Is Dead!
China's Rare Earth Monopoly Is Dead!
By Nick Hodge | Saturday, October 20th, 2012
Or mobile homes worth half a million dollars.
But something really big is going on right here in Fort McMurray, Alberta. New hotels and construction projects are popping up like daisies.
And it's all because of the oil or "tar" sands just north of here.
Spread like a vast ocean of frozen molasses, it's the only oil formation in the world suitable for surface mining.
The Alberta government believes a minimum of 170 billion barrels of oil are recoverable — possibly as much as 315 billion barrels.
And right now, it's already producing 1.5 million barrels a day, or 2% of daily global production.
No doubt about it, these tar sands have already made many energy investors very rich... and they still are.
But that's not why I'm here.
And it's not why I paid a private chopper $2,000/hour to fly me even further north into this remote region of Alberta.
You see, as excited as I still am about the newly-unleashed oil from tar sands, there's something else up here that has the potential to be even more lucrative... much more.
In fact, it's so big — and such a massive game-changer — that it almost defies comprehension.
The Calgary Beacon calls it a "super-mine with the potential to generate billions of dollars in wealth for generations to come."
Troy Media says it "could keep the economy supplied with a steady stream of raw materials for the next century and beyond" and it "just might revolutionize the mining industry."
What I'm talking about is $5.3 billion (or more) worth of the hottest rare earths and precious metals — much of it lying right on the earth's surface. You can even hold them in your hand. I did.
All told, it's more than 612 million pounds of metal wealth spread over 700,000 acres — enough to supply the entire world for the next 100 years.
And the thing is... these numbers come from just one of six different mining parcels up here, all owned by one small company.
The truth is, nobody yet knows exactly how many metals are really here... how much they're all worth... or for how many centuries they can supply the world.
But one thing is certain: The tiny explorer that holds all of these metals under its thumb — and has the breakthrough technology to extract them — stands to make a fortune so massive, it would make any king envious.
Heck, the value of the lithium alone is enough to send this stock 31x higher...
Then there's the vanadium, exceeding its market cap by 291xs — enough to turn every $1,000 into $291,000...
And those are just two of the eight metals it now controls. There are also millions of tons of rare earths, uranium, moly, and more.
If even one of them is partially recovered... or even if the stock jumps 1,000%... this explorer would still be massively undervalued by huge multiples.
So exactly how much wealth are we really talking about here?
Let me put it this way: Right now, the total value of all of this explorer's metals exceeds its market cap by over 74,379%.
And that's from just one of six mining parcels!
This, without question, is the kind of once-in-a-lifetime opportunity that could shower life-changing wealth upon every investor who gets in on the "ground floor."
I'll show you how to make sure you're one of them in just a moment...
But first, let me tell you the amazing story behind this explorer's game-changing technology — and the metals it's set to reap right from the surface of this massive property.
Why Mining Will Never, Ever Be the Same
You see, it wasn't so long ago that nobody thought the metal wealth spread across this vast terrain would ever be recoverable... even though much of sits right on the ground.
In fact, just a few years ago, you wouldn't have been able to recover any of these metals if your life depended on it.
Sounds strange — until you understand why: All of this metal is locked in black shale deposits, raw organic material fused from pressure at the ocean's floor millions of years ago.
And because all these metals are of such a low grade — dispersed so finely throughout so much shale — it was considered too difficult and costly to extract them when they were first found here in 1995.
But all of this is about to change (and as you'll see, it already has changed)
Because just as new technology enabled explorers to finally liberate petroleum locked within the oil sands, so too will it unlock a metal mother lode ready to feed the entire world for centuries to come — and make early investors richer than Midas.
Yet, that's only part of what has me so excited.
You see, it's not just that this new technology will finally set free so much wealth...
It also stands to turn the entire mining industry upside down... making it much cheaper, cleaner, and safer for everybody — even eliminating CO2 emissions.
And most incredibly of all: It promises to do this using only air, water, and microbes!
This might sound crazy, like something out of science fiction, but the truth is that this revolutionary process for extracting the most difficult-to-reach metals works.
How can I make such a claim?
Because it's being used right now — and has already made many investors a tidy fortune.
The Mine that Almost Never Was
To understand how, all you have to do is go back to October 1, 2004, when the European Commission's 6th Framework Program launched its own metals recovery project.
You see, Europe is the largest importer of ore in the world, needing 150 million metric tons of it each year.
And located deep within the frozen wilderness of Finland laid 340 million metric tons of nickel, zinc, copper and cobalt — all locked within the world's largest black shale deposit.
Since 1980, different companies had tried grinding, crushing, and treating the ore surrounding these metals... but to no avail.
It was maddening.
Of course, the Europeans could have extracted the metals if they really wanted to — but that would've required using large amounts of arsenic and cyanide to liquefy them, thus risking the poisoning of vast swaths of soil, rivers, lakes, and streams.
In fact, extracting metals this way is so deadly and dangerous that it's already banned in several American states and many countries around the world.
Then there's the traditional method of metal extraction used for hundreds of years: smelting.
Again, the problem with this is that the metals were so low-grade that it would have been nearly impossible to build a smelting plant big enough to extract them. And even if they did have the money and technology to build one, they'd be faced with another problem: massive, ungodly amounts of poisonous sulfur dioxide fumes spewing into the air.
What Europe desperately needed was a way to get to these metals that was clean, safe, and cheap.
A tall order — and a seemingly impossible one...
But one company had the answer.
Free Labor from Mother Nature
In fact, it had been working on one since 1987.
And the solution they came up with is breathtaking in its elegant simplicity.
Instead of using heavy and expensive machinery or dangerous chemicals to release the metals, they found a source of free labor provided by Mother Nature herself: local bacteria from the ground that can eat right through the ore!
Now, truth be told, this novel method of extracting metal had been used here and there since the 1970s... but never on such a massive, industry-wide scale.
And that was the challenge: finding the right species of bacteria from the soil with the ability to liberate 340 million metric tons of precious metals.
It took years of studying and experimenting with different strains of bacteria...
But after the turn of the 21st century, Talvivaara Mining (TLV.L) had finally done it — and caught the attention of the European Commission.
So in October 2004, they joined forces with eight countries, seven universities, and the Geological Survey of Finland to begin work on what would be the world's cleanest, most energy-efficient mining project ever.
In July 2005, the first ore samples were mined, crushed, and mixed with the bacteria at a demonstration plant.
The result: Just 27 months later, 78% of the metals were recovered!
It was an astonishing success that convinced everybody the construction of the mine must move full speed ahead.
Now, before I reveal the ultimate outcome of this massive, unprecedented undertaking, let me show you exactly how this "natural extraction" process works:
First, the ore is extracted, crushed and stacked inside of a heap pad. Then bacteria are sprinkled onto the ore.
Low-pressure fans supply the bacteria with air from outside. Up above, water sprays down, washing it into the ore.
Once inside the ore, the bacteria begin eating away at it, bit by bit.
After the ore is eaten away, chemical wastes released by the bacteria liquefy the remaining metal...
The resulting solution is then collected in a pond outside the heap and sent to a plant where the metals are recovered.
Afterward, the solution is recycled and sent back to the heap, where the process can begin all over again.
(And remember, as the bacteria consume the ore, they also consume the carbon within it — meaning no CO2 emissions!)
Does this sound too... simple?
That's precisely the beauty of it. It's a natural process that takes natural decomposition and accelerates it. That's all. Clean, simple, cheap, and efficient — the mine of the future.
So how did it work out for Talvivaara?
500% Gains in Two Years
Well, once the mine was set up, production began in October 2008 — and it hasn't stopped expanding since.
In fact, the entire operation is such a success that Talvivaara is right on schedule to reach its annual nickel production of 50,000 tons by next year. It also expects to produce 90,000 tons of zinc, 15,000 tons of copper, and 1,800 tons of cobalt each year...
And in 2010, it announced production of 350 annual tons of uranium as a byproduct from its other metals — enough for all of Finland's nuclear energy needs.
Not only that, it also just signed a 10-year contract with Norilsk Nickel, the largest producer in the world, to sell its entire production.
Talvivaara went from producing nothing to producing 5% of the world's nickel in just a few years.
The small company I've been telling you about is going to do something similar...
Of course, the real proof in the pudding is how ordinary investors ended up faring. And that's the best part — because just two years after this revolutionary mine kicked into gear, they walked away 500% richer.
Take a look at this:
But keep in mind that Talvivaara is a mining giant with a market cap close to $500 million.
By contrast, the tiny explorer I want to show you has a market cap of just $7 million, which means the gains will much more pronounced.
If this company goes up 500% like Talvivaara... it would still be undervalued.
The metals it owns are worth several thousand times its current share price.
Meet the Precious Metal and Rare Earth All-Stars
And that's why I believe 500% gains could soon look like chicken feed once the rest of the world discovers the all-star lineup of rare earths and precious metals it holds:
Molybdenum: Corrosion-resistant and able to withstand extreme temperatures, this super-strong metal is used in everything from aircraft parts, railways, nuclear power plants, skyscrapers, and automobiles to stainless steel products in homes all over the world. Its growing popularity led the London Metal Exchange to add it their list of traded commodities in 2008. And it's such a crucial ingredient of India and China's rapid urbanization that consumption is expected to double by 2020.
Lithium: One of the most crucial metals in the world, lithium is used in medicines, ceramics and glass, and now powers laptops, iPhones, and electric cars. Prices have already tripled over just the last decade. The Techno-economic Research Unit Group sees demand more than doubling by 2020, while the U.S. Department of Energy estimates demand for large lithium batteries soaring from 10,000 metric tonnes per year... to over 500,000 by 2050.
Uranium: Reliable, low-cost, and emission-free, not even the tragic meltdown in Japan can stop uranium's rise as one of the world's most popular energy sources. In Russia alone, ten reactors are under construction and 14 more are being planned right now. Meanwhile, China promises to boost atomic capacity as much as eight times by 2020, while India says it will increase production 13 times by 2030, and South Korea aims to get 60% of its energy from nuclear power by then. All told, these last three countries are on track to use more uranium over the next twenty years than the United States, Japan, France, and Germany combined.
Zinc: It's the fourth most widely-used metal today — and for many good reasons. One reason is its role in strengthening steels for the construction of buildings, homes ,and businesses. And although China already consumes 59% more zinc than Europe, Japan, and the U.S. combined, it still can't get enough as its demand continues outpacing production. Consulting firm Beijing Antaike even projects a shortage of 100,000 tons by 2013 and 150,000 tons by 2014.
Cobalt: Surging demand for smartphones, netbooks, superalloys and high-speed steel around the world has shot this metal up 600% since 2002, with supply still trailing demand by 47%. And it's only getting started, as cobalt is also an essential ingredient in many lithium-ion batteries set to power the electric car revolution, with Credit Suisse estimating hybrid electric vehicle sales surging 1,525% by 2020. No wonder this metal is considered so strategic that the U.S., EU, Japan, and the Netherlands now require it for stockpile.
Copper: It's sleeping right now... but make no mistake, the red metal is destined for a massive rebound as huge swaths of China's rural population continues flooding to the cities, creating a huge demand for any and everything powered by electricity. Heck, China alone is expected to triple its copper consumption by 2020, according to London's CRU Group. Then there's India, set to leapfrog over the U.S., Korea, Japan, and Germany to become the world's second-largest copper consumer. In fact, Chile's own copper commission, COCHILCO, estimates that in the next ten years, Indian demand for copper will grow from 600,000 tons to 3.4 million tons annually.
Nickel: One of the most sought-after metals in the world, it has literally thousands of uses in everything from stainless steel to rechargeable batteries, special alloys, gas turbines, electric guitar strings, and so much more. Not only that, the U.S. government considers nickel to be so crucial that the Treasury can recall 5-cent coins at any time for military purposes... Demand just keeps growing and growing. Right now, China is quietly buying stakes in junior miners to lock in supplies — and is expected to account for 40% of global nickel consumption by 2015, up from just 12% in 2004.
Vanadium: It's the "plastic" of the 21st century: a super-light, super-strong metal that's about to take center stage in the renewable energy and electric car era. Adding just 0.09% of vanadium to steel increases its strength by 100% — while decreasing weight and energy consumption by 30% — making it ideal for use in buildings, bridges, cars, cranes, pipelines, ships, and engines. In fact, when Subaru added it to the lithium batteries in its G4e Concept cars, total travel distance from a single charge soared from 40km to 200 km. No wonder China plans to double vanadium output in three to five years, just to meet surging domestic demand...
As you can see, there's a lot of wealth sitting up here.
And the great thing is if just one of these metals is extracted... if only a little bit of it is recovered... this would still be more than enough to launch this explorer into orbit.
And since so much of it is already sitting on the ground, it's only a matter of scooping it up — no drilling or blasting required.
With scarce supply and sharply-rising demand for these metals, companies able to access them are already delivering jaw-dropping profits to early investors in no time at all...
Just two years after Quest Rare Minerals (QRM) found a property containing similar metals in Quebec, investors walked away with near-20,000% returns.
This could be even bigger than them both, revolutionizing the mining industry the same way Suncor (SU) did for the oil and gas industry with the oil sands.
After all, it wasn't so long ago that Suncor was struggling along at just $1.45, with very smart people in the oil and gas industry doubting that its oil sands would ever be profitable.
All of that quickly changed once the right technology was developed and oil prices shot through the roof — making many investors over 4,500% richer.
And here's the best part: You can still pick it up for cheap. I'm talking dirt cheap — less than 50 cents, in fact... though it could already be much higher by the time you see this.
The only problem is that this kind of super-bargain won't last much longer. All it takes is just one of the world's many ravenous mining giants or foreign governments to set its sights on this mine finder's treasure.
And it's why I can't urge you strongly enough to take advantage of this opportunity right now while you still can.
To help you get started, I've put together a special report full of everything you need to know about this stunning game-changer: "Make 744xs Your Money from the World's 'Forever' Mine."
And I want you to have it, free of charge.
Rare Earths Rising
Rare Earths are now the most sought-after metals in the entire world. The planet can't possibly move forward without them.
They're indispensable for so much of what we take for granted — including rechargeable batteries, electric motors, photo optics, solar cells, strong magnets, communications systems, precision munitions, navigation and guidance systems, lasers, spy satellites and specialized optics.
They're so indispensable, in fact, that last year, U.S. Congress passed The Rare Earths and Critical Materials Revitalization Act of 2010, which instructs the Department of Energy to "assure the long-term, secure and sustainable supply of rare earth materials sufficient to satisfy the national security, economic well-being and industrial production needs of the United States."
And they're making investors some very serious money in no time at all: Rare Element Resources: 700% in 6 months
Avalon Rare Earth Metals: 2,042% in 17 months
Of course, you may not know who I am...
So I should probably go ahead and introduce myself.
I'm Nick Hodge, an analyst at Angel Publishing in Baltimore, Maryland, and editor of Nick Hodge's Early Advantage, the resource for big profits from little-known breakthroughs and disruptive technologies in energy, electronics, technology, agriculture, and more.
Managing editor of Energy & Capital and investment director of the advisory Early Advantage, Nick Hodge been in the investment publishing business since graduating Loyola University in 2006.
Known for a "call it like you see it" approach to money and policy, his insights have led to numerous appearances on television and in various outlets on the Web, including the Business News Network and Yahoo!'s Daily Ticker.
Co-author of a bestselling book on energy investing, Nick has led tens of thousands of investors to ten triple-digit wins and over 220 double-digit wins in the sector. He's also passionate about public policy, population, agriculture, water, and raw materials, and has developed an intuitive approach to using global change for financial gain.
His expertise ranges far beyond stocks. In Early Advantage, Nick shows readers how to make money as well as protect and spend it, offering his musings on on productivity, taxes, food, the outdoors, and other strategies he uses to get ahead in his own life.
When he's not writing, investing, or flying around the world to meet with company executives, Nick can usually be found in a boat on the Eastern Seaboard or on a Maryland farm pursuing the outdoor activities he grew up with and continues to love.
No sector is off limits.
In just the past few years, I've dug into this red-hot sector to bring investors massive, rapid-fire gains such as:
Of course, those are just from some of our biggest gains. "Smaller" ones include:
As you can imagine, spotting winners like these time and again isn't easy.
Countless hours of research go into making sure that every single play has what it takes to put money in your hands. And very often it means taking long treks to desolate patches of land no one in their right mind would set foot in, grilling CEOs, and taking a close, hard look at the true promise of every project — like trekking to the mountains of Alberta.
Sometimes, of course, the promise doesn't jive with the fundamentals, and so a company ends up being left out of Early Advantage.
But whenever a company or fund does make the grade, you can be certain that readers of Early Advantage will be the first to know.
And that's why I keep receiving letters like these:
You can join these and thousands of other thrilled investors today without risking a single penny. You'll see how shortly.
First, though, there's a newly-discovered resource you should know about... one so breathtaking it could even make silicon obsolete — and hand you 300% returns.
Tougher than Diamonds, Thinner than Paper
Imagine rolling up your cell phone or iPad... watching a TV thinner than wallpaper... or folding an e-newspaper into a tiny square.
This kind of future is now closer than ever. And it's all because of an incredible resource isolated less than ten years ago...
One that's both the strongest and the thinnest material ever made — and can even be stretched like rubber.
In fact, this material is so strong that just one sheet of it can support a fully-grown elephant!
Oh... and it's also the very best conductor of heat and electricity on the planet.
Its promise is now so widely recognized that prices have shot up 300% since 2006... while the researchers who discovered it have since won a Nobel Prize.
Without question, this single resource could be one of the biggest game-changers of our lifetimes.
The material I'm talking about here is graphene — a layer of carbon atoms isolated from graphite — and visible to the naked eye.
Its mind-blowing combination of superior strength, lightness, flexibility, and translucency promises to revolutionize everything from fiber optics and nuclear energy to microchips and lithium-ion batteries...
Really, anything containing graphite.
And for early investors, it could promise an endless cascade of profits.
Here's why:
China now produces 70% of the world's graphite. But with its own supplies rapidly depleting and exports slowing, this might not last much longer.
Small wonder why both the EU and the U.S. have declared it a critical supply mineral.
So as prices continue increasing and demand for this wonder resource explodes, I expect it to deliver a massive opportunity for readers of Early Advantage.
And one company is on track to make it happen...
It's a tiny miner in Canada sitting on a 40-year supply of graphite. In July, this miner successfully produced graphene from it and even has a green light from the Canadian government to proceed with mine construction this year.
It's another under-the-radar play I expect to take off very soon, one that you can still get into for under a dollar.
All the details are yours in "The Money Behind the Money: How to Quadruple Your Wealth from Graphene's Rise," which you'll receive along with "Make 744xs Your Money from the World's 'Forever' Mine."
Just for accepting your no-risk invitation to look at Nick Hodge's Early Advantage.
Your Ultimate Resource for Big Energy Riches
When you test-drive Nick Hodge's Early Advantage for 60-days, you'll have exclusive access to the same kinds of little-known plays that have already delivered double- and triple-digit gains time and again... often in just a few days, weeks, or months.
So how much does it cost to receive Early Advantage for an entire year?
Well, when you consider the hours and hours of research required to investigate each possible play... the mountains of data that must be sifted through... and the extensive traveling often required... I think you'll agree I'd be well justified in charging at least a few thousand dollars for this kind of service.
Heck, the helicopter flight to the shale project alone ran $2,000/hour — and that was to investigate just one company!
The truth is, it would be really hard to put a price tag on all of this hard-won intel... though I'm guessing several tens of thousands of dollars.
You can be sure that any Wall Street broker would eagerly charge this much.
Of course, the last thing I am is a Wall Street broker. So you won't pay anywhere near this much — no way.
That's why one year of Early Advantage costs just $699.
Remember, we're talking about what could be life-changing riches from some of the world's most exciting energy stocks... the kind most investors won't hear of until it's far too late.
I'd say that's quite a bargain.
Still, I think it could be even better...
Pay $200 Less than Regular Subscribers
And it's why, for this special offer only, I'm slashing $200 dollars off the regular price...
You can get an entire year of Nick Hodge's Early Advantage for only $499.
Keep in mind that you're not buying anything right now. All you're agreeing to do is test-drive Early Advantage to see if it's right for you.
If it's not, you won't pay a single penny. Period.
And it gets even better...
If you ever become unsatisfied with Early Advantage for any reason (or none at all), just let me know any time — and I'll send you a refund for the balance of your subscription.
It can't get much fairer than that.
So let me show you exactly what you'll get as soon as you join us:
Plus, you'll have immediate access to these special reports:
The intel in just one of them could easily pay for your subscription many times over...
And they're yours to keep no matter what your final decision is.
So, go ahead — read your reports, look through the archives as much as you want, and then decide if Early Advantage is right for you.
But you must act fast.
All of the plays I've mentioned here are extremely time-sensitive. They might be dirt cheap now... but this could change overnight the second word gets out about their enormous profit potential.
Remember, you risk nothing by taking advantage of this special offer.
Best Regards,
Nick Hodge
Editor, Early Advantage Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton Street, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription. |
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