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A CHINESE mining company is planning to raise $50m (£32m) by floating on London’s alternative investment market (Aim), having chosen the UK over listings in Hong Kong and Canada. Rare Earths Global announced this morning that it expects to start trading later this month, and said a $50m fundraising would give it a market capitalisation of around $270m. The listing will give UK investors access to China’s rare earth output, which accounts for 97 per cent of the global total, the company said, adding that it had also seen interest from South Africa, Australia and Canada. “The price of rare earth metals increased greatly last year due to China changing its policies,” said chief executive Simon Ong. “China has a quota for how many tonnes of rare earth metals may be exported and is not allowing newcomers to enter the market – but we already have a licence,” he added. Excess exports from China’s rare earth industry kept prices low for years until August last year, when Beijing imposed tougher export restrictions on domestic producers, driving up global prices. The export quota for 2011 was set at 30,184 tonnes, down about 40 per cent in just two years, with annual output also capped at 93,800 tonnes. Ong said the quality of London’s mining analysts had pushed him towards a listing here, having considered several other markets. “Before we decide to float in London I talked to Toronto and looked at Hong Kong,” he said. “In London there are analysts who know the mining sector very well.” Rare Earths Global has mandated Charles Stanley Securities as nominated adviser and broker to the company.
Rare Earths Global is a mining services group with operations in the People's Republic of China. The Group's primary focus is on the separation, refining and sale of Rare Earth Products ("REPs"). The Group consists of three main subsidiaries; Pingyuan Sanxie Rare Earth Smelting Company Limited, a smelting and separation plant in the Guangdong Province of China with expertise in the extraction and production of REPs. The senior management at the plant has over 20 years' experience in the extraction and separation of REPs. The Group's separation plant has been set up so that it may produce any of the REPs depending on market demand; Billion Full (Huangshan) Mining Services Technology Company Limited, a mining services business providing mining management services, technical support and equipment to rare earth mining companies and factories based in China; and Huangshan Quansheng Mineral Products Sales Company Limited, a Rare Earth Product trading company, which in 2011 acquired a business licence on incorporation which enables Quansheng to trade and sell REPs in China. The Company expects to begin trading in the domestic market following Admission.
Group Strategy Domestic To date, China has had great success in leveraging its leading market position in REEs by attracting international downstream manufacturers to establish factories in China. Furthermore the predicted continued strength of its domestic demand will provide little incentive for China to increase exports of its REEs. As a result of the Group's expertise in the mining, separation and production of REEs, the demand for its services within China remains high. Although the Board intends to improve its production capability at Sanxie, and continue to develop its mining services and trading business, there is also the opportunity to partner with state owned enterprises in the sector which the Board believes will need to leverage the expertise of the Group's senior management. International The rare earth industry outside of China is very much in its infancy. There are several projects which are due to proceed within the next few years around the rest of the world. The Board expects that, as one of very few experts in this field there will be opportunities for the Group to partner with the companies involved in these projects. This might involve the construction of separation plants similar to Sanxie using the expertise of the Group. The Board is currently in discussions with several companies involved in the extraction and production of REPs.
the shareprice does not reflect the worth of the co. on this share, just sentiment and lack of floating shares. and with regard to the lock in period any shares that come to market will be snapped up as quickly as they become available this week is evidence of just that, your also assuming the holders would want to disgard those shares when there on the inside of whats happening here and could be privy to what deal making is in the pipeline. nothings certain in life or aim but i for one am staying put for some time yet! any daily fluctuations are of little or no concerne, it's all about the end game! regards!
staying out of this one. IMO with so few shares, there will be spikes, and it will be volatile. That said, there is no doubt it has been flying. But, i wish you all the best in your investments... GLA
another chinese company i've been keeping beady eye on is haike .the last two three years it shoots up double/trble in weeks ,only to drop back to starting line.it seem to be on the move again?
It's just as made up as any other financial figure. Half the stocks on AIM seem to have no real relation between actual value vs share price.
as they're are not many to buy there are not many to sell or willing to sell at this early stage! reversal is allways healthy but if it did, it won't last long the past few days here have proved that !regards
sentiment and a serious lack of shares will carry this one forward imo! how many young fledgling chinese co's can you buy into on the aim market that specialise in rare earths? with poss deals with other co's being based in china that could come reg's way the possibilitys are endless really. and after stating that the director felt the need to sell a small part of his holding due to demand for shares it tells you how sought after any holding in this co is! i'm not saying where this is gonna end up because nobody truly knows but looking at the hard facts and the way it has traded since launch it's a share i'm willing to get involved in rather than sitting there trying to second guess it! lv 2 tells me that there are 9 different mm's wiling to buy and only 3 with anything to sell whatsoever! draw your own conclusions but thats my thoughts! regards to all and good luck all holders!
i bought in yesterday and sold this morning after talking with my broker. Even he couldn't get his head round this one !! In auction at the moment 1250p, jumped again, curiously watching again like yourself for now. Ask jumped to 1400p while write
to say 'i am not going to repeat what my thoughts are on reg' and then state in the next sentence 'reg really is playing with fire' 'e aware friday sell off' and 'i would not want to be in reg ver the weekend' is a bit confusing. Sounds to me like maybe you had a little short on here and got burnt - hoping to recover some losses? Due to your views I assume you are not invested here? Therefore I see no other reason why you would be on here posing other than offering free financial advice? Have you looked into the company at all? or are you just saying 'what goes up must go down', this keeps proving you wrong. close your short and take the loss imo, maybe buy some shares? Pingyuan Sanxie Rare Earth Smelting Co., Ltd which owns a smelting and separation plant in the Guangdong Province of China and which has expertise in the extraction and production of REPs. The senior management at the plant has over 20 years’ experience in the extraction and separation of REPs. The Group’s separation plant has been set up so that it may produce any of the REPs depending on market demand; l Billion Full (Huangshan) Mining Services Technology Co., Ltd, a mining services business providing mining management services, technical support and equipment to rare earth mining companies and factories based in China; and l Huangshan Quansheng Mineral Products Sales Co., Ltd, a Rare Earth Product trading company which in 2011 acquired a business licence on incorporation which enables Quansheng to trade and sell REPs in China. The Company expects to begin trading in the domestic market following Admission. Sanxie is one of only nine foreign owned companies that is permitted by MOFCOM to export Rare Earth Products from China. In addition, there are only twenty-four Chinese owned companies that currently have an export quota. This demonstrates the good relationship that the Company has built with government at a local and national level. In 2011, the total export quota for Rare Earth Products in the PRC was 30,184 mt and it is expected that this will remain at around the same level for 2012. In April 2011, the Sanxie Plant was awarded a production quota of 300 mtpa of REE products for the year. Currently the Sanxie Plant has a production capacity of approximately 500 mtpa with four separation lines of REO. The management of Sanxie expects that the production quota granted by MIIT will increase in line with this once the necessary environmental tests have been conducted satisfactorily. Sanxie has also entered into an agreement with Ganzhou South China Technology Company Limited whereby Sanxie is entitled to purchase up to 3,000 mtpa of raw material at a discounted price. The supply of raw rare earth material under this contract is expected to commence shortly after Admission. The managment expect production quota to increase by 66% once environmental test have been conducted. DYOR
I think the delayed are 15k of the 20k self off by the director yesterday, gl dundee
I wonderred where the mms where getting the shares from to keep a cap on the share price with that string of buys. Still looks to be in a good position for tommorow with investors happy to pay £10+ for a share here. cant blame them either. this obviously hasnt settled yet since placing. It could find a steady peg at way above the current value. There are so few rare earth companies in china that you can invest in. China hold 97% of the global rare earth output and they cap there exports each year. If trade issue with the US worsen we could see further restictions, bad for western companies, but good for REG shareholders. The funny thing is REG would benifit from both an increae in the quota allowance or a restictions on exports. The price of REG will only rise either way. good luck to the rave investors here!
get in!!! This is one of the few companies in the world with license to export rare earths gloabally from China. They are hopefully about to agree and increase in quota. operations are up and running and should e ale to meet any increase in quota instantly. Gloal hortage of rare earth expected by 2015. prices are going up and costs remain lowest in the world
cheers mate, i'm over the water in Cork. if you take away the last three digits of the sp here it looks and moves just like most aim shares. Seriously though where do you see this in 3 months, any body ?
to be had here. DIrector sell just to put some more shares in the market and still up by 40%. Any small uys are pushing this up, a big buy would see it test £15....
thanks riddler very sound advice, debating whether or not this has peaked again. decisions decisions.
cheers riddler, to be honest i shat my pants went it tanked yesterday after i bought in, happy as larry now though!!
hey i'm just down the road, perth, if its the dundee i'm thinking of? hope not dundee im not far under you.
director sold, sp moving up 40%, welcome to AIM world
couldn't resist, just had to be in this one paid 1025 am i mad or what???
happy days
watch it here it comes. oops too late lol.