Mackie Research’s Matt Gowing Initiates Avalon Rare Metals at SPECULATIVE BUY (AVL)

From SmallCapPulse:

Analyst Comments – Mackie Research’s Matt Gowing initiated Avalon Rare Metals (AMEX:AVL) at SPECULATIVE BUY, noting that it is “significantly undervalued due to opportunities to mine higher grades at Nechalacho.” Key Takeaways: ·          

Market not pricing in the updated resource report: Avalon now has a total of 14.7 million tonnes of Indicated resources in the Basal Zone at a $600 NMR (Net Metal Return) cut-off, compared to the less than 2 million tonnes at this cut-off level that was reported in the September 8, 2010, resource update. ·          

The next major heavy rare earth project to begin producing: More than 20% of the Nechalacho deposit’s total rare earth oxide (TREO) is comprised of heavy rare earth oxide (HREO). This is a very attractive composition as heavy rare earths are in short supply and command higher prices ...MORE