Wolfpack Research short Ramaco Resources, says ‘no way’ to profitably mine REEs

While shares of Ramaco Resources were recently higher following a Wall Street Journal article that discussed its Brook Mine as a potential source of up to $37B in rare earth elements, Wolfpack Research tells investors in a research note that there is “no way” to profitably mine them, and that Ramaco could lose roughly $88B if they were ever able to extract, process and sell $37B of REEs from the Brook Mine. Estimates of processing costs for peer ionic clay projects range from $7.13 to $11.00/tonne, Wolfpack says, more than twice as much as the $3.59 it estimates Ramaco could extract per tonne of material. The firm is short Ramaco.