Monday's Monster Stock (Jan 1)

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Today’s (Jan. 1 2024 🎉) Monster Stock is an important reminder to invest in the future - and with Canada’s announcement of 100% zero-emission vehicle sales by 2035, you don’t want to miss the green energy wave.

Do you think I am??

This weeks pick, Defense Metals (TSX.V: DEFN), has a lot of rare earth elements

• Market for Rare Earths is hot, hot hot 🥵🥵🥵

• ⛏️6 million tonnes of Rare Earths averaging >2%

• 📍80km from Prince George, easily accessible

• $12M raised in 2023 💵

Just in case you don’t know, rare earth elements (REEs) are a group of 17 elements crucial for high-tech applications, including smartphones, electric vehicles, wind turbines, and defense systems. The global rare earth metals market size is projected to reach $20B by 2035.

They’re kind of a big deal, even listed in the US as a critical mineral.

🎯 Why Defense Metals gets the pick this week

• Strong Market Demand for Rare Earth Elements: The demand for REEs in high-growth sectors like electric vehicles (EVs) can’t be ignored. An electric vehicle uses 1kg to 3kg of neodymium-iron-boron (NdFeB) magnets, and these magnets are in 93% of all electric vehicles.

• REE Resource: Defense Metals' Wicheeda project has a Measured Mineral Resource of 6.4 million tonnes averaging 2.86% Total Rare Earth Oxide (TREO), an Indicated Mineral Resource of 27.8 million tonnes at 1.84% TREO, and an Inferred Mineral Resource of 11.1 million tonnes at 1.02% TREO​​. Anything in the 1-2% range is economical, if the location is right.

• High-Quality Asset with Strategic Location: The Wicheeda project is 80 km from Prince George, accessible by a major forestry service road. This especially important for REE’s where economics are everything.

• Experienced Management and Technical Team: Led by CEO Craig Taylor, a seasoned director in resource companies, Defense has top-tier management including Dr. Luisa Moreno, a Physics Engineer with a Ph.D. in Materials Science and Mechanics, known for her expertise in rare earths, and John Goode, a Metallurgical Consultant with extensive experience in REE recovery operations.

⚠️ But Wait, There Are Risks...

• Recent ‘funny’ business in nearby stock: Neotech Minerals (CSE: NTMC) acquired claims near Defense Metals earlier in 2023 from what can only be called a boo-boo by Eagle Bay Resources (CSE:EBR). EBR forgot to renew their claims and NTMC acquired them - the stock has went on to rise more than 250% since. It’s currently halted 👇

• Price fluctuation: Recent price moves up are likely due to the Neotech nonsense, as NTMC spent $500K in marketing the fact their project is close to Defense Metals Wicheeda project. Plus, incoming warrant exercise may put pressure on the slightly inflated price, and they have over 250M shares out, which I don’t love.

This weeks pick: Defense Metals Corp. (TSX.V: DEFN)

Defense Metals (TSX.V: DEFN), located 80km from Prince George, backed by $12M raised in 2023, and a significant rare earth element resource - this stock has huge upside in 2024.

Current Stock Trading Details:

• Stock Symbol: TSX.V: DEFN

• Stock Price: $0.20 (as of Dec 31)

  Market Cap: $51M

👋 Colton, Stock Monster

P.S. Want to view our previous Monster Stock picks? View them here.

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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. We have not been compensated in any way for this pick or content; we genuinely just like it, and because of that, we likely bought shares, assume we own it.