Cobra Resources Responds to China's Rare Earths Export Controls
Why we think this is neutral
This RNS announcement is a general update on Cobra Resources' response to China's rare earths export controls. It does not contain any of the mandatory news types such as contract news, order news, trading update, or financial results. Therefore, a neutral sentiment score is appropriate.
Key Points
- Cobra's Boland Project is a strategically advantageous ionic rare earth discovery with high grades of heavy and magnet rare earths
- Bench scale testing has confirmed the mineralization is amenable to in-situ recovery (ISR) mining, a low-cost, low-disturbance method
- Cobra believes it is well positioned to benefit from increases in rare earth pricing and demand due to China's export controls
Summary
Cobra Resources (LSE: COBR) notes China's decision to place export restrictions on select rare earth elements. The company believes this will tighten supply of critical minerals and make developing REE projects for reliable supply increasingly important. Cobra's Boland Project in South Australia is uniquely positioned with a high weighting of valuable heavy rare earths and amenable to in-situ recovery mining, which the company believes will enable it to be cost-competitive with China.