Business & Investment

It’s the one you know — product boom and strategic partnership

Dear reader,

Australia has made a geological jackpot.

Depending on how much you read these pages, you’ve probably heard me say so before.

Sure, I should be able to find a new hook.

But there is a reason I keep pushing this point.

That’s the same reason Rick Rule told me in an interview It ‘Even your government can’t waste the property that comes your way‘.

There is immeasurable wealth at our feet.

We are very unexplored.

I picked up the surface lightly. But there are still hundreds of meters below the land we can explore.

And the lucky stroke of living here means that the worst economic consequences of a pandemic may be avoided. Well, if it knows where to look …

How to survive Australia’s biggest recession in 90 years. Download the free report to learn more.

Ink the paper and form an alliance

There are some buzzwords that need attention this year.

One is “energy conversion”. You may have already started to see it. The other is “downstream”. And, of course, there is also a “circular economy.”

Over the next few weeks, we’ll discuss all these implications and how to benefit from them.

Today’s topic focuses on “protection”.

I don’t think it’s the buzzword used to describe this imminent trend.

I’m convinced that those who do business will call it a “strategic partnership.”

Tomato Tomato, jargon is irrelevant. The important thing is to be able to see trends before other investors.

That’s why I want to keep an eye on Australia’s looming commodity boom.

But this time it’s different.

I see. These are the five most expensive words in history, but ask me.

This commodity boom is more than just digging up rocks and selling them to the highest bidders. This time around having a rock and the appropriate partnership that accompanies it.

You just need to see recent deals Lynas Rare Earths Ltd [ASX:LYC] And the US government wants to see its power.

Lynas has partnered with the US Department of Defense to build a processing plant in Texas. exactly. Not a private mining company in the United States. Not a manufacturer. The US government service has agreed to fund half the cost of the plant.

Traces of rare earth elements are used in almost every electronic device we use. But they are absolutely important to defense machinery and aerospace. This could be one of the reasons the scammers intervened to make this deal …

Well, I explained before that The rare earth industry is not always a profitable industry.. But that didn’t stop all shareholders from getting excited. Linus’ share price has risen 21% in the last two weeks as news of Linus trying to make new best friends has begun to spread.

The thing is the signature of the contract Not new information..

The idea that the government would sign an agreement with a rare earth miner was mentioned dating back to mid-2019.

so Interview with Byron King — A former Navy man has become a geologist and an investment editor.He Rockstock Insider It Governments need to intervene and secure the supply of rare earth elements..According to him, it wasn’t a problem if, But When..

The idea that Australia plays a favorite with other countries is the beginning of a multi-year trend.

The Federal Government of Australia has changed the rules for foreign investment. They now have the power to reject transactions worth more than $ 1.

Increasing tensions with China mean that the Australian Government is likely to support partnerships with countries we like. A nationalist investment decision that goes beyond just digging up rocks and figuring out how to handle them on our shores.

In other words, Australia may be moving to the “downstream” side of the mining industry. What do you mean? More about that tomorrow.

Well, on my phone with Jim

Now it’s time to set the rock aside.

I’m about to jump into a zoom chat with Jim.I just finished writing his new book New Great Depression.. We’ll talk about money, modern monetary theory, and why the worst health crisis is still going on.

The details will be next week.


Shae Russell's signature

Shay Russell,
Editor, Daily Reckoning Australia

PS: Our publication, The Daily Reckoning, is a great place to start your investment journey. Let’s talk about the big trends that drive the most innovative stocks in ASX. Learn all about it here.

It’s the one you know — product boom and strategic partnership It’s the one you know — product boom and strategic partnership

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