3 Rare Earth Stocks to Buy Before Trump Makes a Deal With China

President Trump landing in China today for one of the most important summits of the year and this sector could be hit the hardest. Joining us today is Sean Broadick with Weiss Ratings to talk about this important trade summit and one sector that really could be impacted the most. Sean, thank you so much for being here today. First time on the show. We love having new guests here. This summit is such a big deal. It's what everyone is talking about right now. And we know they're going to cover many different topics. I expect the Iran war to be one of the big things they're talking about, but you're focusing on a different area that could really be a main center point of this conversation over the next couple of days while the president is in China. >> China minds about 80% of of the 17 different rare earths in the world and then processes about 85 to 90% of those. And so really, they control global supply. Now, we're in a race to start up supply here in the US, but I'm sure as your subscribers know, because they're smart people, you don't start up mines overnight. It's a long process. So, the race is on. So, remember last year when President Trump um imposed all the new tariffs on everybody, including China. As a response to that, China put extra controls on the exports of its of the important rare earths that it actually produces and ships out to the world. This was on top of previous bands that they put on gallium, germananium, antimony, tungsten, and other certain graphite things. They put all those on there. It looked bad, but then after they had a meeting in Korea, they said, "Okay, we'll just not have the ban for a year." Well, that's coming up in in November. So, the runway to that is kind of shortening. And if you're a US company, you have to start making plans. Some have made plans. Uh Tim Cook, or as President Trump likes to call him, Tim Apple, made a deal with MP Materials, which is just starting up um production of like rare earths here in the US. But someone like say Elon Musk who's also on the trip has to be concerned cuz you need rare earths for all those EVs that he produces. So it's an important question. There are so many CEOs there. I don't know if it will come up. I mean I think it should. It's a very important thing. We need these for all sorts of things. But it's also interesting that part of the restrictions China has put on is that these can't be used in like US weapons for example. And so that adds on an extra layer of complexity with what's going on in Iran stuff. So there's a whole bunch of things going on there. Anyone who's interested in this market should be watching this very closely. >> Yeah, some major implications could be coming. And you are going to share with us today three of these stocks and the rare earth elements that you are watching very closely that are on your watch list center are goodbyes for making a future case of why they're going to continue to see growth here in the US no matter what comes out of this trade discussion. So, we'll get to those in just a minute, but I want to talk a little bit more about why these rare earth elements are such an important discussion for all these CEOs on this trip. And I know we just had the Nvidia CEO added last minute also going on this trip. So, let's talk about the AI trade um aspect of why rare earth elements are so important for that story as well in the market. >> Sure. um important for AI, important for EVs, important for anything with big energy consumption because they're used to make permanent magnets. We have, excuse me if I say these things wrong, neodymium and praisemium. Uh those are the two light rare earths and they're called light rare earths and heavy rare earths according to their atomic weight. So, but those are the two light rare earths that are generally used in permanent magnets. Then you have heavy rare earths which are dprosium and turbium that they're really good at protecting against heat which tends to come up in magnets. So you kind of need all four. You really do. That's used for a whole range of things. It's used for AI data centers. It's used for all that stuff. So in the new economy that seems to be taking shape in America rare earths are absolutely crucial and we need more and more of them. Now the race is on here in America. We are seeing the government not only give money to companies to speed up production but also taking stakes in companies as well. But as an investor, it's nice to know Uncle Sam is a partner in this. And so he's not going to let these companies fail. I mean, it's a really ri risky business starting a mine. I've been in the mining analysis business for decades now and I can tell you there are some great dreams, some great projects people have that just plain old run out of money. That's not going to happen with these companies and so that's an important step. >> Yeah, it's easy to see that you are an expert in this area. You worrying about pronouncing these right. I don't even know how to even start at some of these things. So clearly you know what you're talking about. You are deeply involved in the mining area like you said and I know that you and your team at Weiss Ratings have just released a new special report with two of these mining stocks that a lot of investors wouldn't have even heard of or thought of before. They're both trading under $10 right now and it's a really fascinating report. I watched some of it. Great information in it. If you want a special offer to access that report and more of what Sean has to offer at Weiss Ratings, scan the QR code or click the link in the description to get the names of those two stocks and the research that he and his team have done. Sean, we're going to dive into these three rare earth companies that are getting some of that interest from the US government and from more investors in the market. more general question for all of these kind of rare earth elements that trade almost as a group when you see one go up you see others go up and in how it relates to this China summit happening right now we know when that announcement came from China back in October November of essentially banning any kind of trade of these rare earth materials with the US we saw these US stocks just skyrocket in October you can see it in all of their charts could we see that again before we get into these names I just want to know as a group. Do you think it's possible that depending on what happens in this conversation or what happens with that renewed truce or non-renewed truce later in November time frame when it expires? Could we see that huge surge that we saw back in October? >> Oh yeah, there's always room for that. I mean, that doesn't mean it has to happen. We've also seen a surge in like lithium prices as well. You know, lithium is not a rare earth heck. It's certainly not rare. It's one of the original building blocks of the universe created in the Big Bang. But there's a fund called the REMX which is a fund that tracks rarer stocks and its biggest holding is a lithium stock Abal Marl. So obviously people are confusing this in their minds anyway but it's all about energizing the new economy. >> Yeah. The third stock on this list. This is the first time I'm seeing this stock. So I'm excited to get to that one that you have for our viewers today. Let's get ahead and start out with that first stock that you have on the list. And this one might be a new name to some, but it has had a really great last 30 days or so where it's seen some strong interest right now in the market. >> The first one is Critical Metals Corp. Uh, ticker symbol CRML. If you look beyond 30 days, it's had quite the roller coaster ride, hasn't it? It actually peaked back when the US was kind of stomping around Greenland because this is actually focused on Greenland. It has the Tan Breeze project. It's huge. It's one of the largest rare earth resources on the planet. Interestingly, the US government has made a significant commitment to the company uh from the export import bank which issued a letter of interest uh for a funding package about 120 million and they also secured approval for a deal it worked out to increase its um stake in the tan bees project to 92.5%. The US is actually staking a lot on this one actually working out now. It still isn't producing. It's a development stage. This has some ways to go, but uh I think it's certainly going a lot higher. >> So clearly the mine project is underway right now, but I want to talk about the stock itself and why we have seen so much renewed interest in this name just in the last few weeks or so. What's behind the runup that we've seen in the stock price, >> I think the meeting in China has a lot to do with it. That's an important thing to keep in mind. So we've had a great run out of March. We're nowhere near the uh highs we hit earlier this year and the even higher highs last year. So there's a lot more room to run. My opinion looking at the stock is the next leg could go much higher. >> I want to talk about why there is such a China connection with this name. You mentioned this company has a connection to Greenland. Is the minerals that they are mining with this company in particular something that China is currently leading the market in? Does China control a lot of the supply and is that why this stock could specifically be impacted by whatever comes out of this discussion in China right now? Yes, it is the heavy rare earth elements um which are not the ones you just need for magnets, but it's used for all sorts of like weapons for example. And so this is the key is that China's getting kind of ticked off about what's going on in Iran. They are imposing these restrictions as a reaction to that. So for our own independence, for our own ability to defend ourselves, we have to be able to build the weapons we want with the minerals we need. So that's why this project Tan Breeze is so important. It's really one of the solutions we have to China's control of this market. >> Yeah. And that is why I think you can expect to see some more movement in the stock this week depending on what that conversation looks like over the next 48 hours or so with the president. And I want to see let's move on to the next name on your list. Is that China impact still as relevant in the second name that you have? And this is maybe a more familiar name for some people who have already been investing in the rare earth sector. >> Some people know about it. Let me tell you, it was news to my subscribers, but you never know. It's called USA Rareears. The symbol is USA. This is an American mining and manufacturing company. And what is trying to do is build like a mind magnet vertical integration chain. And so it has a mine, Round Top Mountain, which has, you know, a billion tons of material, including 15 of the 17 rare earth elements. It also has a commercial magnet production line, which is in Still Water, Oklahoma. It also has a formal letter of intent with the US Department of Commerce, which is a one which was worth 1.6 billion, and that includes $277 billion in chips act funding and uh $1.3 billion in like long-term debt. The US government is really interested in seeing these guys get that whole mind and magnet thing going. I know people complain about the US government picking winners. You know, oh, they're picking winners, they're picking losers. This industry really needed a jump start. And that jump start really had to come from the US government. So, we're seeing the kind of thing we haven't seen since World War II, but in many ways, it's that important because future defense depends on it. We need to have these things. So, you can see why the government is doing that. >> Yeah. And I think that government attention, that government investment from the US federal government is when US started to come on the radar. Several of our viewers out there, we've had a few different guests on who've talked about this one. It's because you can't ignore the government kind of picking favorites and choosing to invest federally in this company, which is we've seen a couple of other times in this rare earth sector. I think one thing that investors are seeing though is they invested maybe when they heard that announcement that the the US government was, you know, making an investment in US and they maybe invested when they heard it making more and more headlines. But when you look at the chart for this one, it's really been all over the place. There's been a lot of volatility even despite that federal government involvement. And it seems to just continue to eb and flow. Analysts are super bullish on this one. even though it's up over 50% in the last month, there's still, you know, analysts still believe that the stock is going to move higher. And so I think for retail investors that they see this volatility, they see all of the expectations and the risk that's involved in it. Maybe you're looking at the short interest and going, there's some short interest on this one, too. Maybe they just want to stay away because of the volatility. What do you say to investors who are maybe fearful of this stock in particular, but maybe the whole rare earth sector because of that volatility? It is volatile. I just like this one. I think it has a lot further to go, especially as they bring these this new production online. It's just starting phase one production. And production should hit 600 tons per year by the end of this year and then double that next year. And so when you look at a company would like that kind of runway, that's anything any manufacturer, any minor would would like to see that kind of run up. That's one of the reasons that I like USR. >> I know I've heard from viewers on our Market Beat Monday live streams that this is a name that has been really strong for them in the last few weeks on this huge 50% runup that it's seen. So, there's interest. There's people who are absolutely uh making money off of their investment in US. But you see the downtrends it's had too. And you know that there are other investors who maybe got in at the height of when the excitement came around US and they might still be down based on that investment that they made. So volatility is a name of the game in this kind of a story. And before we move on to the last name which is very very new name. We're talking about this today because of this China trade summit that the US president is at. And we know that any headline that comes out of that meeting today could impact this sector. And then any headline that comes when this truce with China ends later this fall could also impact this sector again. So, how do you deal with a a sector that can be very much impacted by the news of the day? >> If you have something that's dipping, pulling back, that's when you really want to get in and bring that back to rare earth. It seems likely, we never know for sure, but it seems likely investors are expecting China to lift restrictions in this meeting. Now, there is that US government guarantee on prices for important rare earths. So even if China does give us more supply, the US thinks it's important enough to get the rare earth industry in the US going that it's going to keep a price floor. So this is the kind of thing I think where you can kind of ignore the short-term volatility a bit and just say, okay, the longer term picture is these things will have a price floor and they'll be increasing production a lot and the US needs to build up this huge stockpile. There's a lot of things um coming together that just look great for this industry longer term. And so I wouldn't worry about the short-term volatility so much except as an opportunity to buy. News comes out of the meeting that the Chinese are going to open the floodgates and everything goes down 15 20%. What do you do then? I would be a buyer then because all those reasons that I gave you before and also you know that China can put the restrictions back on too, right? We know that happens. They love to play these games. >> I think that's solid advice. Thank you for sharing that for our viewers today, too. And it is clear to me that you like to alert your investors, the people who subscribe to your system, about stocks before they run up. You want to alert people to something that's uh new and upand cominging before it it rallies. And that is exactly what you'll find in the report that Sean and his team at Weiss Ratings just did. Again, it's a list of seven. Two of those names are under $10 right now and have huge expectations on them. If you want to get access to that report, we have uh a special offer just for our YouTube viewers today from Sean and his team at Weiss Ratings. You can scan the QR code or click the link in the description to get access to that report and those names and the different stocks that he has just in that report today. But I am excited, Sean, to get to this last stock that you have for our viewers that you are sharing with us. This is a brand new name to me. What is this company? >> It's called American Rare Earths and the symbol is A R NF on the over-thec counter market. And American Rare Earth is actually an Australian company, but it's working in the US. How much more confusion can we add to this? It's crazy. Also, American Rare Earth is developing the largest rare earth resource in North America. It's called Hlet Creek. It's a project in Wyoming. It has uh the four key magnetic elements. Neodymium, praisemium, deposium, and turbium. Those are the ones that we need to make the rare earth magnets and to keep them from burning up. So, we absolutely need those. And um interesting point, unlike a lot of the rare earth deposits around the world that have higher levels of radioactive elements, Hock Creek is remarkably clean. And so that lowers regulatory hurdles for add for actually getting the mine online. And uh they've had some technical breakthroughs. So the company says they can remove things more quickly and e easily lowering their operating costs. We should see a pre-feasibility study in the third quarter. So, we could see some excitement either before that or after it comes out. What the company is going to do, uh, they're going to do a pilot phase where they mine stuff and then they ship it to Saskatchewan to produce refined oxides and that'll give them more of a picture of what they're actually going to get out of this thing. So, that starts uh sometime next year. So, it is a developer. One important difference between this one and the other two is that the US government hasn't invested in this project yet. And I'm going to say yet, the US government has heavily subsidized the company's technical development, which is why they're actually coming up with these breakthroughs. You know, they're doing R&D partnerships and like stuff like that. And also, it's um planning to uplist to the NASDAQ by the end of the year. So, it is on the OTC now. Right now, it's not on the radar, but it is going to be on the radar soon enough. >> If you look this one up, it's a teeny tiny company. I mean the 20 28 cent stock it's not the typical uh value that a lot of people are investing in right now unless you are someone who likes penny stocks and there are people who love penny stocks and there are people who don't a lot of volatility and moves in this name too but I think the timeline that you spelled out is really important and clearly you are very experienced at investing in these mining stocks and so when you talk about that timeline of that's a target for for the next year that this could be on the NASDAQ in the next year there's still risk involved with some of this so when you're looking at a new a new mining operation like this one is where do you see the biggest risk of they're not going to have the funds to really complete the goal of this mining project? That risk you kind of hinted towards earlier when we talking in general about these kinds of mining projects. >> That's why this stock is much more risky than the others. That's why it's priced the way it is. And one thing that's really important is management and location, location, location. This is in Wyoming, which is a mining friendly state. That really helps. I think that the market is currently underpricing it, but yes, there is plenty of risk. Maybe they won't get the loan from the XM bank. Maybe something else will go on. We don't know. Maybe they'll run out of money. Maybe they'll have to sell the project. It's just I think the odds favor this team with this project in this location actually having success, but nothing is guaranteed. >> Yeah. Important to keep in mind with this name and the others on this list, too. really this entire sector when you're looking at mining stocks be ready for volatility and the potential that some of these projects don't come to fruition too because it takes so much capital to actually make these mines happen and and see that successful revenue on the the end of of all that early investment. So thank you so much Sean for for giving this information. Anything else you want to share about your experience with the mining sector? >> These aren't the only things that hog people should be looking at copper which is making new all-time highs. For example, Freeport had terrible news recently which sent the stock lower. That was a great time to buy it because it's up from that bottom now. Why? Because they won't be producing as much copper from their big mine, which means that the copper they do produce is going to be more valuable. And actually, we've seen problems with copper production around the world. So, the copper rally isn't done. Definitely look at copper stocks. Silver starting to come back. Everyone was ready to pronounce that dead. Boy, that's starting to look good now. I think gold's going to 10,000. It's really an exciting time. What we are seeing is we are seeing a commodity super cycle and these come along once in a while and when they do you have to make your picks and hang on. They will be volatile. We've already seen that in the metals so far just this year alone, never mind longer term. But right now things seem to be lining up for a good bull run. And the amazing thing is that um most investors are not aware of it. They'd much rather invest in real estate. What's been happening lately? We've seen home prices going down in big parts of the country. Meanwhile, the price of gold sure peaked and it came back, but it's really finding its footing now. You have to do your research or else find someone smart enough to do the research. Then you have to pick your targets and you have to have um a little tolerance for pain. Don't put all your money on one big bet. Certainly spread it around because some things will work out. Some things despite the best of intentions, some things will not work out. >> Sean, thank you so much. Great insights for our investors today. If you are looking more into this rare earth sector, make sure to watch the latest conversation we had for another perspective on some stocks to look at in this sector. If you're interested, you can find that video right