Christopher Grove: The Core Problem Underlying Canadian Resource Stocks

Tom welcomes back Christopher Grove to the show. Chrisopher is President and Director of Commerce Resources and an expert on the rare earth element market.

Despite China's lack of direct involvement in the export halt of germanium, gallium, and antimony to the U.S., it underscores Beijing's dominance in the sector. With the surge in demand for rare earth elements due to technology advancements, particularly permanent magnets for electric vehicles, no new significant producers have emerged since 2011-2012. Prices have reverted to levels last seen then as a result. China's manipulation of input feedstock prices has caused unease and encouraged nations to seek alternative rare earth element sources

The US Department of Defense is investing in vertically integrated supply chains, as shown by the Defense Industrial Base Consortium and the Global Partnership Initiative. China's market dominance remains a concern but presents an opportunity for countries to invest in creating alternative sources. Chris discusses the challenges he faced as CEO of Commerce Resources, including high Canadian mining regulations and the repeal of the uptick rule on the Toronto Stock Exchange. This rule change has led to significant losses for resource companies when they release positive news. Grove plans to list Commerce Resources on the Australian stock exchange in late Q1 or early Q2 of 2025 as a potential solution to address this challenge. The discussion discusses the complexities and challenges of mining in Canada and importance of advocacy efforts to relevant government bodies.

Commerce Resources is completing an updated preliminary economic assessment for its Ashram project and awaiting responses from grant opportunities in Canada and the United States.

Time Stamp References:
0:00 - Introduction
0:47 - Rare Earths & China
8:15 - China & Processing
11:33 - Western Deregulation?
15:50 - Substitution
18:59 - Recycling?
19:57 - Adapting to China
21:34 - Biggest Deposits?
25:45 - Personal Challenges
29:21 - Miners & Shorting
34:52 - Canadian Challenges
38:15 - Commerce Resources
41:33 - Wrap Up

Talking Points From This Episode
- China's dominance in rare earth elements poses challenges but also opportunities.
- No significant new rare earth producers have emerged since 2011-2012.
- US Defense Department investing in vertical supply chains to reduce dependence on China.

Guest Links:
Twitter: https://twitter.com/commercerescce
Website: https://commerceresources.com/

Mr. Christopher Grove is President and Director of Commerce Resources since September 2014. Previously, he worked as Corporate Communications for Commerce since 2004 and has significant contacts within the financial communities in North America and Europe. Mr. Grove joined the Commerce Resource board in 2012 and has been active in representing the company abroad.