Stock Tip Tuesday…

Aclara Resources (🇨🇦: $ARA) (🇺🇸: $ARAAF)

^_NEWS
Brazil bullish on rare metals 🇧🇷 

OK, i am going to dive straight into this one with a quick introduction to our stock pick of the week. Aclara Resources is a heavy Rare Earths company with a development project in Chile and an exploration project in Brazil. 

With Chile currently as one of the biggest exporters of REE (rare earth elements) the outlook for the company seems bright, However my eyes are fully focused on the Brazilian project and here’s why ⬇

Brazil recently decided it was tired of China’s shit and reliance on them when it comes to rare earth elements (REE) and I’m all for it!

The South American country presents itself as a perfect provider of metals essential for advanced technologies and the green energy transition (we will come to this a little later). Not to add, Brazil holds the fucking world's third-largest REE reserves. Despite its potential, Brazil’s rare earth industry is currently dormant. However, the government want to wake this beast up!

Accompanied by low labor costs, access to hydro-power for clean energy, and $194 million in government support for strategic mineral projects, Brazil is on the way to stake its claim in a rapidly developing sector. Aclara intend to exploit this wealth of resources and if done correctly we could see the stock blow the FUCK up!

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Aclara is attacking the Electric vehicles!

If your head hasn’t been stuck in sand. You will know the Electric vehicle (EV) market is heating up. With China preparing to upscale their production, Musk going no where and the sheer demand increase over the past few years. It is becoming a massive sector that has huge potential, as we know.

Aclara themselves are a green company. They developed an extraction process called Circular Mineral Harvesting, that no other mining company can claim to have: it uses no explosives, no crushing, no milling and to make a long story short its supper environmentally friendly and tickets almost every box when is comes to mining waste.

If you are not convinced. Aclara on its website states a quote by CEO and director Ramón Barúa Costa

Aclara’s mines and EV manufactures are a perfect fit and its because of ionic clay, a rare earth element and Brazil holds one of the largest deposits in the world in the Serra Verde mines.

These oxides are vital for manufacturing high-efficiency magnets in wind turbines and electric vehicles. Serra Verde is the first large-scale operation outside Asia to produce all four critical REEs. Brazil and Aclaras hope is this is the beginning of many more.

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Not so distant Future

A lot of the previous talk has focused on the Brazil project which is further down the line. However, the chile mines are eyeing a 2027 start date with the goal of supplying the growing EV market with REEs and have secured an $80 million investment. Which should speed up the process.

The investor is Chilean holding company of the mining and steel sectors (CAP) and it secures the future of Alcara. The experience CAP brings to the table is huge. They operate several mines, several ports and they have a steel mill very close to the Penco Module (Aclaras mine) that they have been operating for close to 50 years!

This deal has also freed up $30 million according the Aclara’s CEO to use on the Brazilian project.

Summary ⭐

I believe Aclara Resources a really strong company destined for growth. It’s Valuation of $0.54 on the TSX offers a huge opportunity for investors to get on the ground floor of a really exciting high potential stock.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

We don’t own stock in ARA. Full disclaimer here

Cheers,