Uncovering the Hidden Opportunity in Antimony
The world is on the cusp of a critical resource shortage, and most investors are oblivious to the implications. Antimony, a vital metalloid, is essential for the production of various defense and high-tech applications. The U.S. military, in particular, relies heavily on antimony for its military equipment and infrastructure.
The Rise of Antimony
Antimony has been used for decades in military applications, including armor-piercing ammunition, night vision goggles, and infrared sensors. Its importance extends beyond defense, as it’s also used in the production of smartphones, tablets, high-definition TVs, semiconductors, kitchen appliances, solar panels, and new cars.
The Supply Crunch
China currently dominates global antimony production, accounting for over 60% of the world’s supply. However, concerns about supply risk have sent antimony prices soaring by over 200% in the past year, with no end in sight. The U.S. and European nations are now racing to prevent a potential Chinese monopoly.
Companies Poised to Benefit
Several companies are well-positioned to capitalize on the antimony shortage. Military Metals Corp. (CSE: MILI, OTCQB: MILIF), a British Columbia-based mineral exploration company, has been on an acquisition spree of mines with large historical resources. Perpetua Resources (Nasdaq: PPTA) and Larvotto Resources Ltd. (ASX: LRV) have seen significant share price growth in recent months.
The Trojarova Antimony Project
Military Metals Corp.’s recent acquisition of the Trojarova Antimony Project in Slovakia offers significant upside potential. The project hosts a historical resource of 2.46 million metric tons at a grade of 2.48% antimony and 0.59 grams per ton gold, equivalent to 60,998 tons of contained antimony and 46,778 ounces of gold.
Chinese Export Restrictions
The recent restrictions on antimony exports by China have exacerbated the supply crunch, making it even more critical for companies to bring new supplies online quickly. Experts predict antimony prices could reach as high as $30,000 per ton, surpassing current levels of over $38,000 per ton.
The Bottom Line
The antimony shortage presents a high-upside opportunity for investors. Companies like Military Metals Corp., Perpetua Resources, and Larvotto Resources Ltd. are poised to benefit from the rising demand and limited supply of this critical metalloid. As the world grapples with the implications of this shortage, these companies could see significant increases in valuation, providing investors with potential windfall profits.
Other Resource Companies to Watch
Rio Tinto (NYSE: RIO), BHP Group (NYSE: BHP), Albemarle Corporation (NYSE: ALB), SQM (NYSE: SQM), Perpetua Resources (NASDAQ: PPTA), Cleveland-Cliffs Inc. (NYSE: CLF), Southern Copper Corporation (NYSE: SCCO), Cameco Corp (NYSE: CCJ), and Teck Resources Limited (NYSE: TECK) are other resource companies worth keeping an eye on as they navigate the changing landscape of critical mineral supply and demand.
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