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2 Stocks to Buy as China Tightens Its Grip on Critical Minerals

Nov 22, 2024 - oilprice.com
The article discusses the critical role of antimony, a mineral used in long-range missiles and advanced electronics, in the ongoing geopolitical tensions between the U.S. and China. China currently dominates the market for this mineral, and its recent export restrictions have caused a surge in antimony prices, impacting the tech and defense industries. The article highlights two companies, Military Metals Corp. and Perpetua Resources, that are working to reduce Western dependence on China for antimony. Military Metals Corp. has acquired major antimony deposits in Europe and North America, while Perpetua Resources' Stibnite Gold Project in Idaho could supply 35% of U.S. antimony demand in its first six years of production.

The article also mentions several other companies that are significant players in the mining of critical minerals for defense applications, including NioCorp Developments, Barrick Gold Corporation, Newmont Corporation, Arch Resources, Constellium SE, Trilogy Metals Inc., and Arcadium Lithium plc. These companies are working to secure domestic supplies of critical minerals, reduce reliance on foreign sources, and strengthen the U.S. defense industrial base.

Key takeaways:

  • China currently dominates the market for critical minerals such as antimony, a component used in advanced electronics and long-range missiles. This dominance leaves Western countries vulnerable, especially as China has recently restricted global antimony shipments.
  • Military Metals Corp. and Perpetua Resources are two companies aiming to help Western countries reduce their dependence on China for critical minerals. Military Metals Corp. has made significant antimony acquisitions in Europe and North America, while Perpetua Resources' Stibnite Gold Project in Idaho could supply 35% of U.S. antimony demand in its first six years of production.
  • Other companies to watch include NioCorp Developments, Barrick Gold Corporation, Newmont Corporation, Arch Resources, Constellium SE, Trilogy Metals Inc., and Arcadium Lithium plc. These companies are all involved in the production of critical minerals or materials needed for defense applications.
  • Investing in these companies carries inherent risks, and potential investors should conduct their own research and consult with a licensed investment professional before making any investment decisions.
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