Dit bedrijf is het enige winstgevende REE-bedrijf, dat praktisch nog niet meegedaan heeft met de hype; is dus geschikt voor echte beleggers.
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Neo Material to raise neodymium powder prices in Dec
NEM.TO
$6.14
+0.47+8.29%
Thu Nov 11, 2010 11:12am EST
* To increase Neo powder prices by $2/Kg in Dec
* Says input cost exceeding previous peaks of 2008
* Expects continued upward pressure on input costs
* Shares up about 8 pct, hit 2-week high
BANGALORE, Nov 11 (Reuters) - Canadian rare-earth processor Neo Material Technologies Inc (NEM.TO) said it will raise prices of its neodymium-iron-boron magnetic powders in December as it expects a continued rise in input costs due to China's export quota restrictions.
China, which produces about 97 percent of world's rare earth metals, has cut export quotas by 70 percent for the second half of 2010 -- a decision which has snowballed into a geopolitical debate -- following strong objections by countries including the United States and Japan.
Neo Material said its Magnequench division, which makes the Neo magnetic powders used in the production of precision motors and sensors, has been witnessing margin contraction as neodymium costs have continued to rise ahead of the selling price increases.
On Wednesday, Neo Material -- one of the few western companies operating rare-earth processing plants in China -- said revenue at its Maqnequench division rose 32 percent. The Toronto, Ontario-based company, now plans to raise prices by $2 per kilogram, three months after it had last raised prices by the same amount.
"Over past several quarters, (we) have experienced significant raw material cost increase, with input cost now exceeding the previous peaks of 2008 and I dare say probably its all time high," Chief Financial Officer Michael Doolan said on a conference call with analysts on Thursday.
Rare earth elements, which are used in high-tech devices, windmills, batteries and some weaponry, are strictly controlled by China, despite pressure from the United States and Japan to loosen export constraints.
Neo Material's shares, which have risen more than a third in last three months, were up 44 Canadian cents at C$6.11 on Thursday afternoon on Toronto Stock Exchange. They hit a two-week high of C$6.15 earlier in the session. (Reporting by Ashutosh Joshi in Bangalore; Editing by Vinu Pilakkott)