InvestingSuccess

(This Post Originally Appeared on this Website June 7, 2026)

We hear about Rare Earth (REE) metals on a regular basis now.

China controls the bulk of REE production.

The administration in Washington has taken steps to start building a stockpile of critical minerals to counter the China threat.

One metal we hear little about is element #21 on the Periodic Table – Scandium.

It is typically found in small quantity in most REE deposits. It is also often found in ore bodies containing Niobium and Titanium. So it is not “rare” per se, it just occurs in small amounts mixed in with other minerals.

Why will we be hearing more?, you ask.

Adding scandium to aluminum creates lightweight, high-strength, and highly corrosion-resistant alloys. This is critical for aerospace manufacturing, where structural weight savings drastically reduce fuel consumption. And let’s face it – expect to hear more – lot’s more – about space investments going forward. Wall Street is going to judge space investments based on the cost to lift 1 kg of cargo into orbit. Reduce your cost by using light-weight metals in your rocket, your operating margin will improve, and your share price will move higher.

Scandium-stabilized zirconia alloys significantly increase the electro-conductivity of solid oxide fuel cells, making them highly efficient. Think Bloom Energy (N:BE) and its solid oxide fuel cells that are capable of powering everything from small towns to massive data centers.

High-strength aluminum alloys with Scandium will allow for significant electric vehicle weight reductions. Lighter vehicles will have a longer driving range. Consumers tend to judge EV’s based on their driving range. Even traditional gas-powered vehicles will benefit from these alloys. Lighter vehicles burn less fuel. The net pounds of aluminum per light duty vehicle is forecast to increase from 459 lbs. in 2020 to 570 lbs by 2030.

So, where does Scandium come from?

Here is one example: Rio Tinto (N:RIO) operates a titanium metallurical facility near Montreal, Quebec. Rio has pioneered a breakthrough process to extract and produce high-purity Scandium directly from the waste streams of titanium dioxide production. The Canada Growth Fund (CGF) has now invested heavily into this facility.

Going forward, expect to hear more about Scandium. Expect any number of small cap mineral exploration companies to suddenly start pounding the Scandium drum. Just be careful with these junior stories. Do your due diligence. Stick with legitimate stories only…

One Scandium story that is legitimate is Sunrise Energy Metals – an Australian company that trades under the ticker SRL in Sydney. It has the Syerston Scandium project located some 300 kms NW of Sydney. The project has an average grade of 644 ppm Scandium. Think about this number…. In 1 million grams of rock mined from this project (1 tonne), there will be on average 644 grams of Scandium. Compare this to what Rio Tinto has in the bauxite at its Canadian facility – 50 to 70 ppm. Clearly the economics are on the side of Sunrise.

The entire Syerston deposit is thought to comprise 2000 tonnes of Scandium oxide ore. Sunrise is suggesting that its cost of mining will work out to $534 per kg of Scandium oxide. The cost of building the mining facility will be $120 million. The timeframe to build the complex and have it up and running is about 18 months yet. Final processing of the Scandium mined ore concentrate will be done in America.

So far, the Company has received a “Letter of Interest” from the Export-Import Bank of the United States (US EXIM) for up to US$67 million in financing repayable over 15 years. I have no doubt this Letter will turn into a completed deal package.

The Company has offered Lockheed Martin (N:LMT) an option to purchase the first 15 tonnes per year of Scandium oxide production over an initial five-year period.

The market for Scandium oxide metal is opaque. Purchase agreements are not always made public. Scandium refined to 99.999% purity is thought to sell for $4500 per kg. What mined ore concentrate from a minesite will sell for is not known at this point. However, the selling price will be comfortably above the projected $534/kg operating costs. So – Sunrise will be a money maker. The Company (whoever they are) in America that ultimately gets the contract to do the high purity 99.999% refining will also be a money maker.

Let’s take a look at a chart for Sunrise (IPO date Oct 9, 2007).

Price action follows an 88-day cycle (this is the Mercury orbital period). The above chart has a plot of Mercury latitude in the lower pane. The horizontal pink lines depict the first trade natal latitude of heliocentric Mercury. Take a look at the blue arrows on the chart. The blue arrow around May 28 denotes Mercury passing its natal latitude. Notice how share price started to fade right at this latitude event. Notice how price bottomed and started to gain right at the end of the 88-day cycle. 

Planetary latitude events should be taken seriously. On June 5, the entire Nasdaq 100 index literally crapped its knickers when Mercury passed through its Jan 31, 1985 natal latitude level.

In my May 26 Substack post I warned: … caution is advised. Before you “bet the farm” on Sunrise, remember that Sunrise still does not have all the funding in place to build the minesite. The timeline to a first production scenario is probably 18 months away yet. Share price is going to gyrate around on news or lack thereof. probably best to approach the stock with a short term trading mentality.

Mercury will again pass the Sunrise natal latitude point in late July. Hopefully the share price is down to the $12 region. If the chart technical trend indicators suggest a bottom, there could be opportunity for a short term trade. 

Using the planets, their cycles, and their latitudes can help a person stay focused and out of trouble. Think of all those people out there right now who bought at the peak of teh market because they listened to the talking heads on the financial media who waxed prophetically about the AI revolution.

Take charge of the markets. Take charge of your investing future. Learn to use the planets to navigate the markets.

What Has Happened Since

The Scandium project has received a conditional nod of approval from the US Government for $400 million. There are some hurdles and conditions to satisfy yet and it is hoped that by the end of 2026, the conditions will have been met.

Keep an eye on late November when Mercury again passes its natal latitude level.