American Rare Earths Ltd (ASX: ARR) shares were up 45.9% to 8.9 cents by today’s market close. The American Rare Earths share price moved as high as 10 cents in intraday trading, hitting a 52-week high before falling back. This came after an announcement by the company that discussed the US President’s executive order in relation to American domestic rare earth production. The executive order was made on 30 September 2020.
What was in the announcement?
According to the company, the executive order by the US President is critically important to the development of the US domestic rare earth supply chain. It also highlights the strategic value of the company’s two America-based projects, located in Arizona and Wyoming, to the US government.
American Rare Earths announced that its US-based board and management are well positioned to take advantage of the strategic initiatives being offered by the US government.
According to the announcement, the executive order stated the “importance of cooperation on supply chain issues with international partners and allies.” The intention of the bill, according to American Rare Earths, is to immediately strengthen America’s domestic rare earth mining and processing capabilities for defence and radiation-hardened electronics usage.
The announcement stated that the company’s US team was securing research and development relationships on cutting edge and very promising processing technology. The company stated that leading American universities will soon be testing American Rare Earths’ project feedstock in the processing of rare earths. The universities will be testing processes that have been shown to harvest much higher percentages of the elements than previous processes.
American Rare Earths discussed that both sides of American politics have bills that are currently moving through the US congress, each of which contain key elements that the company believes will help it to accelerate its rare earth projects.
About the American Rare Earths share price
American Rare Earths is an Australian exploration company with a focus on rare earth projects in America and Australia. It was previously known as Broken Hill Prospecting and has been listed on the ASX since 2011.
At 30 June 2020, American Rare Earths had cash on hand of $1,433,784. It made a net profit after tax of $923,000 in the year to 30 June 2020.
The American Rare Earths share price is up 709% since its 52-week low of 1.1 cents that it fell to during the March bear market. It is up 345% since the beginning of the year and since this time last year.