Everest Metals (ASX: EMC) (OTCPK: URRNF) shares are down 32% today. The EMC share price drop is explained by their announcement that they've found rubidium. Which is, well, one of these things which is interesting. As a marker of the wider geology it can be informative. Hmm, what? You're actually suggesting that a rubidium deposit has a value? That there should be a rubidium mine? No, sorry, you're not being serious. It's just not one of those metals that anyone is going to build a business around. And, to be serious about it, anyone making stock market announcements which seem to indicate they might is not being, in their turn, serious.
The problem is that they're taking rubidium seriously at Everest Metals: “Hole ME23-007 intersected over 40 metres grading 0.26% Rb2O from 49m, including 19m at 0.33% Rb2O (0.43% Rb2O + Li2O), in addition to three higher grade zones of 2m @ 0.53% Rb2O + Li2O (14-16m), 2m @ 0.53% Rb2O + Li2O (20-22m) and 2m @ 0.53% Rb2O + Li2O (30-32m).” What that really tells us is that they failed to find lithium. Where we should all start worrying is here, where Everest discusses the rubidium market: “Rubidium is currently used in the manufacture of photocells and in the removal of residual gases from vacuum tubes. Rubidium salts are used in glasses and ceramics, and in fireworks to give them a purple colour. Rubidium compound (rubidium carbonate) has multiple industrial uses, principally for speciality glass such as fibre optic cables, telecommunications systems including an important role in GPS systems, and night vision devices. Moreover, the escalating demand for Rb in biomedical research is expected to propel market growth. The price of Rubidium Carbonate is currently over $1,100/kg which is one of the highest value critical metals.” And, well, yes, that's obviously a cut and paste from an encyclopaedia.
Everest Metals share price from ASX
The thing about rubidium is that the market is tiny. From the USGS: “ Industry information during the past decade suggests a domestic consumption rate of approximately 2,000 kilograms per year.” The US uses, maybe, 2 tonnes a year of Rb. In factm hte market is so small that the producers have all been closing down: “ During 2021, no rubidium production was reported globally but rubidium was thought to have been produced in China.
Production of rubidium from all countries, excluding China, ceased within the past two decades. Production in Namibia ceased in the early 2000s, followed by the Tanco Mine in Canada shutting down and later being sold after a mine collapse in 2015.”
Now maybe that gets everyone excited, if there's no other production then money can be made! Except it's a tiny, tiny, market. And one where a primary producer would be able to make, at best, a handful of millions a year in gross revenue. It's just not being serious.
This might sound harsh - in fact it is harsh - but people touting the values of a primary rubidium mine simply are not being serious.
