Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Rare Earth Element Stock Insights

Commodities / Metals & Mining Apr 21, 2011 - 02:20 AM GMT

By: The_Gold_Report


Best Financial Markets Analysis ArticleU.S. investors and institutions are seeing green in their rare earth elements (REEs) and strategic metals investments, and one investment bank is leading the way. Merriman Capital Services Group Managing Director Spencer Grimes shares his secret to investing in the right cleantech companies in this exclusive interview with The Gold Report.

The Gold Report: Tell us a bit about Merriman Capital Services Group, the advisory services that you provide to investors and perhaps some of the company's history.

Spencer Grimes: Merriman Capital is a financial services firm focused on fast-growing companies and their institutional investors. Solid fundamental analysis is at the core of everything we do and what drives our business decisions. As such, we view equity research as the "point of the arrow" among our services, which also include investment banking and institutional sales and trading.

TGR: In the past, Merriman specialized in tech-related investments. Has that evolved?

SG: Yes. When Jon Merriman helped establish the firm in February 2002, the mission was clear: Revitalize the boutique investment-banking landscape by servicing emerging-growth technology, telecom, consumer, media and Internet companies. The West Coast growth banks that once advised these companies had disappeared, having succumbed to larger financial institutions or were destroyed by the effects of the Internet meltdown of 2000. Merriman saw the need to fill this void.

Subsequently, in 2004, we established our cleantech industry practice, making us one of the first Wall Street firms to devote significant resources to this sector. As it relates to companies we advise in the Services Group, our cleantech practice has adjusted along with advancements in green technologies and a rise in the rare earth element (REE) space. These types of companies are no longer limited to the end producers of hybrid cars or lithium batteries. Institutional investors are seeing more opportunity in the commodity side of cleantech. This is also evident in the types of companies we've been working with on the OTCQX.

TGR: Your work with the OTCQX has helped Canadian issuers be presented to U.S. investors, so it is easier for them to participate?

SG: Yes, Sally. Simply put, the OTCQX allows U.S. investors to invest and see real-time trading in U.S. currency through U.S. broker/dealer information systems. The Canadian companies that list don't have any redundancies, in terms of reporting. It's a very efficient, cost-effective manner for them to engage with U.S. investors more fully. To date, we've seen great success.

With the increased number of companies listing on the OTCQX, we've started seeing interest from investors and institutions that previously weren't engaged because they didn't do commodities. Now, these investors are starting to come around and see it as a cleantech play. They see how lithium integrates and operates within the battery space, the way vanadium can be added to increase storage time for the smart meter and how wind and solar can benefit from some of these rare earth and strategic metals to increase productivity and lower price. When investors thought it was just commodities, they weren't sure; now, the macro picture is starting to take a different shape in their minds. I think there's great opportunity here.

TGR: Over the last few years, the specialty metal and rare earth space has shifted from being small and misunderstood to being able to attract more mainstream investors, including institutions, as you mentioned. Tell us about some equities that you think would be of interest to North American investors.

SG: A couple that come to mind that we've recently listed are Stans Energy Corp. (TSX.V:RUU) and Medallion Resources Ltd. (TSX.V:MDL; OTCQX:MLLOF).

TGR: Stans Energy, despite its name, is an REE company with assets in Russia. What do you find interesting about the company for the U.S. investor?

SG: In my opinion, it's really the only pure-play investment in a known commodity and a proven resource. I know the company would argue that nobody else has the assets available to do what it does. Stans has done a lot of work to prove that out; for example, within the past 15 months, it has acquired 100% ownership of the former Soviet mine, Kutessay II—the only mine in the world located outside of China to ever produce all 10 heavy rare earth elements (HREEs)—Dysprosium, Erbium, Europium, Gadolinium, Holmium, Terbium, Thulium, Ytterbium, Lutetium and Yttrium. I think the stock price has reflected that.

TGR: What can you tell us about Medallion?

SG: Medallion is a rare earth company that's just getting into it. It is strategically positioned to meet the challenges of evaluating and cost effectively exploring low-cost HREE deposits. Medallion's HREE mines, Eden Lake and Red Wine, are two of the finest REE exploration properties in North America. Demand for HREEs is projected to grow at an annual rate of nearly 10%.

TGR: Any other companies that you assisted with OTCQX listing that you'd like to discuss?

SG: One company that we haven't listed on the OTCQX but have gotten to know recently is Energizer Resources Inc. (TSX.V:EGZ; OTCBB:ENZR). It's interesting to me because of the company's vanadium play. Energizer owns 100% of one of the largest vanadium discoveries in the world located in Madagascar. This discovery is fairly recent, and the company has an enormous opportunity for success.

TGR: We talked about some of the rare earth players, Stans and Medallion. We've also talked about a vanadium company, Energizer. What about lithium, or any other specialty metals, companies?

SG: Nemaska Exploration Inc. (TSX.V:NMX; OTCBB:MNKEF) is in the specialty metal space, specifically lithium. It is in early stages and preproduction, but I really like the team. CEO Guy Bourassa has been fantastic in the way he's approached the business thus far. I like the work Nemaska's doing in the James Bay region of Quebec with its main properties all 100% owned and easily accessible by roads year-round. Its subsidiary, Monarques Resources Inc. (Monarques) will soon spin off with great potential. We're very interested in seeing progress on that one.

TGR: Merriman Capital is cosponsoring a resource investor conference in New York City with 49 North Resources Inc. (TSX.V:FNR). Can you give us some more information about the conference and why you're involved?

SG: The event is April 26-27 at The W Hotel New York. We're excited to be part of it because, as we've had more and more success in the resources space, we find more investors who want to see the companies we're working with and the opportunities that are out there. Main Street U.S. investors are not as familiar with the commodity space or resources in general as are investors in Canada and Australia, for instance. But with recent activity and success over the past few years, a lot of U.S. investors see that this may be more than a blip on the radar. It's not necessarily a bubble, but rather a part of a longer-term trend as we progress into a new phase of the economy. We're excited to have investors attend. The conference is free; for more information, visit our website at or the conference website at

TGR: And is the conference open to portfolio managers, brokers and individual investors? Also, will there be an opportunity for investors to meet with management?

SG: Yes to both questions. We've seen a lot of interest from institutional, as well as retail, investors. There also will be a couple of keynote speakers, including David Franklin from Sprott Asset Management and Rob McEwen from McEwen Capital.

TGR: I'm sure you agree it is exciting to find a full-service investment bank in the U.S. interested in making a commitment to this space.

SG: Yes. And while it's nice to be a leader in this space, I do think that more people will come on board. What's paramount is the convergence of commodities with the cleantech play. As U.S. investors learn how these companies are the building blocks of solar, battery smart grid technologies and so on, the more opportunities will emerge for these investors to make money. If investors can find an opportunity to increase alpha, they will move toward it.

TGR: Thank you for your time today.

SG: You're welcome, Sally. Thank you.

Spencer B. Grimes is managing director of Merriman Capital Services Group, where he runs day-to-day operations. Previously, he oversaw the corporate services practice at Merriman, where he specialized in advising corporate management teams on a variety of matters, including executing complex trades, share-repurchase programs and coordinating with investment banking to assist in financing transactions. Prior to his tenure at Merriman, Spencer held similar roles at Morgan Stanley and Hambrecht & Quist.

Want to read more exclusive Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights page.

1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Timmins.
3) Ian Gordon: I personally and/or my family own shares of the following companies mentioned in this interview:Timmins Gold, Golden Goliath, Millrock and Lincoln. My company, Long Wave Analytics is receiving payment from the following companies mentioned in this interview, for receiving mention on my website, Golden Goliath, Millrock and Lincoln Gold.

The GOLD Report is Copyright © 2011 by Streetwise Inc. All rights are reserved. Streetwise Inc. hereby grants an unrestricted license to use or disseminate this copyrighted material only in whole (and always including this disclaimer), but never in part. The GOLD Report does not render investment advice and does not endorse or recommend the business, products, services or securities of any company mentioned in this report. From time to time, Streetwise Inc. directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules