These Green Energy Metal Stocks Are Surging

Those of you who have followed my work for some time know that the portfolio anticipated — front ran — both the inflation trend and the trend towards green energy.

We did that by positioning in quality lithium, uranium, copper, and rare earth names.

Some have taken off and others — like Leading Edge Materials —  look like they are about to.

The reason is because it’s starting to become obvious to even the mainstream financial media that this is a trend that is only headed in one direction.

The most recent — and very consequential — announcements from the green energy space should capture everyone’s attention.

Last month, General Motors (NYSE: GM) and General Electric (NYSE: GE) announced that they plan to study ways they could develop a supply chain of rare earths and other minerals used to make electric vehicles and renewable energy equipment.

Both companies signed a memorandum of understanding to evaluate how they could work together to improve access to rare earths and rare earth magnets, as well as copper and steel.

GM said it would work with General Electric on opportunities in North America, where both companies are headquartered, as well as in Europe.

The announcement is important for several reasons...

The treasure chest both companies have has the potential to spur investment from outside groups looking to get first-mover advantage.

Europe has long talked a good game about the need for an independent critical metals supply chain — I started writing about it in 2016 — but has yet to get aggressive on allocating large amounts of capital towards that goal.

The second reason it’s consequential to the Junior Resource Monthly portfolio is because if GE and GM are serious about sourcing rare earths from Europe then they will have to have a conversation with Leading Edge Materials (TSX-V: LEM)(OTC: LEMIF) as Norra Karr is the only European rare earth deposit able to deliver what the two companies need: heavy rare earths for magnets.

The second big green energy metals announcement was in the uranium space. Kazatomprom, the world’s largest producer of uranium, announced it’s going to participate in a physical uranium fund. Think of it as Sprott 2.0.

The fund will hold physical uranium as a long-term investment, with its initial US$50 million of purchases financed by its founders and plans to raise US$500 million for additional uranium purchases in a second development stage.

Kazatomprom CEO Mazhit Sharipov said:

“The fund will leverage the combination of Kazatomprom's expertise in the uranium market and NIC's proven track record, with the AIFC offering investors direct exposure to the attractive opportunity presented by the long-term fundamentals of the uranium market and nuclear industry.”

The utilities are still asleep at the wheel and I for one am more than happy to profit from being early on the uranium trade and the utilities being late to the party.

Let me be crystal clear: uranium and copper and lithium are all headed higher.

This isn’t just a short-term squeeze due to inflation... there are real supply/demand drivers that are fueling this.

Here locally in Texas... Williamson County is on the verge of landing the largest ever corporate facility investments in the history of the state. Going all the way back to when Texas was Mexico.

The Samsung semiconductor manufacturing plant includes $6 billion in infrastructure, land and building costs, and $11 billion worth of personal property, machinery, and equipment.

According to Williamson County, the project will also provide 6,500-10,000 direct construction jobs while the plant is being built.

The shortage of semiconductors — devices that include nodes, transistors, and integrated circuit chips — is a worldwide issue, as production has slowed and supply chains of vehicles, computers, and other electronics have become a challenge.

The investment — like Tesla’s gigafactory 40 minutes from where the Samsung plant would be — isn’t a short-term one.

Rent-a-car company Hertz (NASDAQ: HTZZ) sees the writing on the wall and just announced a massive order for 100,000 Tesla (NASDAQ: TSLA) Model 3 electric vehicles.

The order stands as the single-largest purchase order of electric vehicles to date and provides Tesla with roughly $4.3 billion in revenue in a single transaction.

The future is happening right now... and subscribers to Junior Resource Monthly are already getting paid from it.

But the move higher is just getting going... and though there are several triple digit winners in the portfolio, there are still several companies that have yet to make their move.

Fine tune that portfolio, define those timelines and risk tolerance, and put your capital to work...

Because the next few years look to be extremely profitable ones if you do it right.

Let's get it!

Gerardo Del Real
Editor, Resource Stock Digest