Trading The Rare Earths Today (MCP, REE, AVL, SHZ)
Shares of Molycorp, Inc. (NYSE: MCP) are higher in pre-market trading, gaining $3.50 to $62.75 after the company announced it would be buying a 90% stake in AS Silmet for about $89 million, which would give it exposure to European markets, and will double its rare-earth oxide production capacity.
AS Silmet is producing up to 3,000 tons of rare earth products and 700 tons of rare metals ever year.
"This acquisition provides Molycorp with a European base of operations as well as a larger global customer base, greater rare earth production capacity, and an expanded product line," Molycorp's CEO Mark Smith said in a statement obtained by Reuters.
The other rare earth names like Rare Elements Resources (NYSE: REE), Avalon Bay Resources (NYSE: AVL) and China Shen Zhou Mining & Resources Inc. (NYSE: SHZ) should move higher on this news, and traders may want to watch these names for some rare-earth exposure today.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.