Q: Greetings 5i,
Your thoughts on DEFN amidst all this Rare Earth hype would be appreciated.
Cheers!
Your thoughts on DEFN amidst all this Rare Earth hype would be appreciated.
Cheers!
5i Research Answer:
DEFN is a small ($90M market cap) exploration and development stock for rare earth element deposits. It owns 100% of the Wicheeda Rare Earth Element Project in BC, and these minerals are used for defense, national security, and green energy tech. The BC government considers Wicheeda a critical minerals asset, which helps to give it some regulatory and strategic backing. There is execution risk involved, it is pre-revenue, and uses most of its free cash flows to fund operations, but its balance sheet is decent. We think it looks OK, but there are risks involved due to its size, pre-revenue, and execution risks.