REEs are critical to all cutting edge technologies now and early investors should be rewarded! We just took a small position in our 4th REE stock-CRML

 

 

REE stocks - Critical Metals Corp. (CRML)

Brief overview

CRML is a pre-revenue, high-risk developer with two strategically important assets: 

1. Tanbreez (heavy-rare-earth-rich REE project in Greenland) and 

2. Wolfsberg (fully permitted hard-rock lithium project in Austria). 

The March 12, 2025 S-K 1300 for Tanbreez established a compliant 45 Mt @ ~0.4% TREO with ~27% HREO, and EXIM Bank issued a US$120M loan LOI in June 2025—signals of both resource scale and geopolitical relevance. Balance-sheet strength and execution (DFS, permitting, financing, and offtake) remain the gating items; upside hinges on converting strategic interest into funded, build-ready projects. GlobeNewswireCritical Metals CorpReuters

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What CRML legally controls

• Tanbreez (Greenland, REEs): CRML holds a controlling interest in Tanbreez Mining Greenland A/S and has the contractual right to increase ownership to 92.5% after investing up to US$10M (management indicates completion targeted in 2025). Stock Titan

• Wolfsberg (Austria, lithium): CRML controls the fully licensed Wolfsberg lithium project (spodumene) in Carinthia, ~270 km south of Vienna. criticalmetalscorp.gcs-web.com

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Resources & geology (defensible figures)

• Tanbreez S-K 1300 (Mar 12 2025): 45 Mt @ ~0.4% TREO; ~27% HREO share (unusually high for hard-rock deposits). Company communications also describe the broader kakortokite host rock ~4.7 Bnt, but the 45 Mt is the current compliant MRE to anchor on. GlobeNewswire

• Additional technical context: Company May 2025 update reiterates the 0.38–0.40% TREO and ~27% HREO mix and highlights deep drilling upside. Critical Metals Corp

• Wolfsberg DFS (Mar 8 2023, JORC): Ore Reserves ~11.5 Mt @ 0.64% Li₂O (Proved+Probable). The DFS outlines ~15-year LOM at ~780 kt/a steady-state mining. MinedocsAustralian Securities Exchange

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Project status & 2025 milestones

• Tanbreez

  • EXIM Bank LOI: US$120M 15-year loan to support development (technical/economic studies, pre-production, start-up). Critical Metals Corp Reuters Investing Nasdaq

  • DFS underway: CRML engaged NIRAS A/S (Denmark) to complete the Definitive Feasibility Study. Critical Metals Corp Stock Titan

  • Strategic context: U.S. & Danish officials previously lobbied to keep Tanbreez out of Chinese hands, underscoring U.S. supply-chain priorities. Reuters

  • Economics (company scenario): CRML disclosed an NPV range around US$2.8–3.6B and IRR indications (company estimates; treat as preliminary until DFS). Critical Metals Corp

• Wolfsberg

  • Project described by CRML as fully licensed hard-rock lithium operation with prior DFS work (European Lithium-era), positioned for EU battery supply chains. European Lithium

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Financing & balance sheet (directional)

• Public trackers show a thin cash position vs. development needs and modest debt—typical for pre-revenue developers; future equity/convertible/offtake prepayments are likely. Please consult the latest quarterly on CRML’s IR site for exact figures and runway. StockAnalysisCritical Metals Corp

• Key funding signal: the EXIM LOI meaningfully de-risks early-stage capital for Tanbreez but is not a definitive commitment; conditions precedent and U.S. policy priorities apply. Reuters

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Ownership, institutions & insider activity (indicative)

• Institutions: Data sources vary; reported institutional ownership ranges are low-to-mid single digits on some trackers, with filings showing increased positions from certain funds 

• (e.g., BlackRock 13F showing a ~600% q/q increase to ~1.65 M shares as of 6/30/25). Treat 13F data as backward-looking. ChartMillNasdaqFintel

• Insiders/Form 4s: Third-party screens show limited recent insider transactions; always verify directly against the SEC filings page or CRML IR for definitive records. NasdaqMarketChameleon.com

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Competitive/strategic positioning

• Why Tanbreez matters: Hard-rock REEs with a high HREO proportion (~27%) are strategically valuable for NdFeB magnet supply chains (EVs, wind, defense). Western HREO projects are scarce; Tanbreez’s scale and deep-water access add appeal. criticalmetalscorp.gcs-web.com

• Why Wolfsberg matters: A fully permitted EU-located Li project fits Europe’s push for domestic battery materials under critical-raw-materials policies. criticalmetalscorp.gcs-web.com

• Geopolitics as a tailwind: U.S. interest in Greenland’s REEs is explicit and ongoing; CRML’s asset base aligns with Western supply-chain security goals. Reuters

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Near-term catalysts to watch

1. Tanbreez DFS progress (scope, capex/opex, flowsheet, schedules). Critical Metals Corp

2. Financing progression (conversion of EXIM LOI; additional project finance; potential EU/Denmark/Greenland support mechanisms). Critical Metals Corp

3. Resource/Met updates (infill/deep drilling results; potential HREO recovery data). Critical Metals Corp

4. Offtake discussions (magnet makers, defense/EV supply-chain counterparties)—not announced yet, but pivotal. (No public offtakes disclosed in sources above.)

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Key risks

• Funding risk: Multi-hundred-million-dollar capex across two projects; equity dilution is likely absent major offtake prepayments/exports credit support. StockAnalysis

• Technical/execution risk: Kakortokite mineralogy and HREO recovery need DFS-level proof at commercial scale. criticalmetalscorp.gcs-web.com

• Permitting/community & geopolitical complexity: Greenland/EU policy and environmental standards can lengthen timelines; EXIM LOI is conditional. Reuters

• Commodity-price risk: REE basket pricing (especially Dy/Tb/Nd/Pr) and lithium price volatility materially affect economics.

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Is CRML a likely takeover target?

• Strategic Appeal
  CRML holds two geopolitical-critical assets:

  1. Tanbreez — a rare-earth project in Greenland rich in heavy REEs (critical for Western defense and technology supply chains).

  2. Wolfsberg — a fully permitted lithium project in Austria, positioned to feed Europe’s EV battery market.

  These assets align strongly with Western governments’ supply-chain security strategies, which enhances CRML’s attractiveness to both industrial players and state-backed investors. Cohen & Company Capital Markets+2

• Growing Confidence Signals
  The appointment of retired U.S. Air Force Four-Star General Timothy Ray to CRML’s advisory board underscores the company’s strategic importance and could raise the profile among potential acquirers, especially in defense circles. Yahoo FinanceStock Titan+1

• Economic Upside
  A Preliminary Economic Assessment (PEA) for Tanbreez shows:

  • NPV of ~$3 billion at modest discount rates,

  • A remarkable ~180% IRR,

  • Based on just ~1% of the total 4.7 billion‑ton host-rock. Investing.com+5Stock Titan+5criticalmetalscorp.gcs-web.com+5

  These economics hint at enormous latent value, enticing for larger mining or strategic buyers looking to vertically integrate or diversify.

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Who might be interested?

1. Major REE or lithium producers
   Companies like MP Materials, Lynas Rare Earths, or Albemarle may see value in expanding into Greenland or Europe to balance global supply chains.

2. Battery manufacturers or automakers
   Automakers or battery materials firms (especially in Europe) could pursue CRML assets to secure feedstock. Similar models have precedented off-takes like the earlier BMW MOU seen in European Lithium’s pre-merger phase. Cohen & Company Capital Markets+4Stock Titan+4

3. Governments or state-sponsored consortia
   European or U.S. defense and infrastructure entities (or even sovereign wealth funds) focused on building critical metals autonomy may pursue equity or asset acquisitions for strategic supply.

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Summary

• Potential?  Yes—CRML’s strategic resource base and improving project metrics make it a plausible acquisition target.

• Likely suitors? Established mining majors, battery/EV OEMs, or government-backed purchasers aligned with critical supply-chain objectives.

Bottom line (investor lens)

• Thesis: CRML offers leveraged exposure to Western-aligned REE (HREO-rich) and EU-located lithium. If the DFS validates economics and EXIM + other project financing crystallize, the risk profile improves and the equity could re-rate.

• Reality check: Until then, it’s speculative—expect volatility, financing overhangs, and execution risk typical of early developers. Position sizing and risk controls are

  Related Articles:

• MP Materials has had a tremendous run in July as the REE fever rose. Going forward, there are others to consider as M&A candidates for MP

Rare Earth Elements - Ucore Rare Metals Inc. - update!

Kraken Robotics in a great position to help supply NATO navies with their sub sea technology - July Update!

 

Did Desjardin just Release the Kraken? - Kraken Robotics Investment and Business Report (June 2025)

Kraken Robotics’ recent momentum as a growing business and investment opportunity, now including these strategic dimensions:

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💰 1. C$100 Million Bought-Deal Financing

• What’s new: Kraken announced a bought‑deal public offering in June 2025—raising roughly C$100 million with a 15% over-allotment.

• Why it’s positive:

  • Bolsters liquidity, enabling aggressive expansions or debt reduction.

  • Supports continued investment in acquisitions and manufacturing scale-up.

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🧪 2. Acquisition of 3D at Depth (Closed April 2025)

• What happened: Kraken acquired U.S.-based LiDAR specialist 3D at Depth for US$17 million in cash money.tmx.com+11krakenrobotics.com+11jpt.spe.org+11.

• Strategic plus:

  • U.S. presence: Adds offices in Texas and Colorado, strengthening Kraken’s position amid trade tensions weareaquaculture.com+4krakenrobotics.com+4jpt.spe.org+4.

  • Market diversification: Begins direct manufacturing and sales in a politically critical region.

  • Technical synergy: Enhances SeaVision with deep-water (>300 m) laser capabilities; 3D at Depth recently completed its 1,000th project krakenrobotics.com+8krakenrobotics.com+8jpt.spe.org+8.

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🏭 3. Nova Scotia Subsea Battery Facility

• What happened: Plans for a high-energy SeaPower™ battery plant in Halifax slated for late 2025 krakenrobotics.com+2krakenrobotics.com+2krakenrobotics.com+2.

• Why it matters:

  • Strategic location: Halifax—Canada East Coast Navy HQ and major NATO port—offers logistical and defense synergies.

  • Defense reach: Perfect staging for contracts, including those with NATO navies. Infrastructure and proven naval partnerships are already in place.

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📈 4. Robust Q1 2025 Results & Backlog

• What happened: Q1 revenue was C$16.1 M with 62.7% gross margin, C$58 M in cash (up sharply YOY), and C$94.6 M in working capital.

• Why it’s positive:

  • Confirms improved profitability, operational efficiency, and a strong cushion for growth.

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🧭 5. Growing Bookings & Service Expansion

• What happened: Since Q4 2024, Kraken received ~$45 M in subsea battery orders and ~$3 M in sonar bookings.

  
  
  

• Why it matters:

  • Reflects sustained demand in defense and offshore energy sectors.

  • Validates product-market fit across diverse offerings.

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🎯 6. Defense & NATO Engagement

• What happened: Ongoing contracts include $50 M+ for Royal Canadian Navy mine hunting systems in Halifax and past contracts with NATO navies (Australia and UK).

  
  
  

• Why it’s important:

  • Halifax facility aligns geographically with Kraken’s East Coast naval customers.

  • Strengthens NATO interoperability and trust amid global naval tensions.

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✅ 7. Comprehensive Subsea Ecosystem & Diversification

• What’s evolving: Kraken now offers sonar (KATFISH™), LiDAR (SeaVision + 3D at Depth), subsea batteries (SeaPower™), and RaaS.

  
  
  

• Pipeline inspection through Kraken Seapower

• Why it’s smart:

  • Reduced reliance on a single revenue stream.

  • Offers integrated solutions for underwater defense and infrastructure clients.

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📊 Summary Table

Strength	Details
Financial Power	C$100M financing + C$58M cash = strong investment capability
North American Reach	U.S. operations via 3D at Depth + Halifax manufacturing
Defense Ecosystem	Halifax ties to RCN and NATO; major contracts secured
Tech Portfolio	Integrated sensors + power + service delivery
Proven Demand	Order backlog and major contracts affirm market traction

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🎯 Why This Update Matters for Investors

• Global Expansion: A U.S. footprint hedges geopolitical trade risks, unlocking access to American contracts.

• Strategic NATO Positioning: Halifax location and facility align with allied naval operations, reinforcing defense supply chain credentials.

• Integrated Tech Stance: Offers deep-tech defense clients everything from data to power, buoyed by recurring service demand.

• Financial Firepower: Strong capital reserves enable execution of strategy without dilution or debt stress.

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In combining financial strength, geographic diversification (Canada + U.S.), purpose-built naval infrastructure, and a full-stack subsea solution, Kraken Robotics has elevated its status to more than a sensor company—it’s now a strategically aligned defense-tech enabler with actual commercial momentum. These developments make it a more compelling long-term investment.

Here’s a deeper look into Kraken Robotics (PNG/KRKNF) covering contract timelines, valuation considerations, and the competitive landscape:

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📅 Contract Timelines & Execution

• Royal Canadian Navy Remote Mine hunting & Disposal System (RMDS)

  • Awarded: December 2022, with formal kickoff in January 2023.

  • Acquisition phase: 24 months, through end-2024, followed by a 5‑year integrated logistics support (ILS) program ($40 M acquisition + $10 M ILS) .

  • Operational readiness: RMDS installations expected fully operational in 2025 .

• KATFISH Sonar System for Royal Danish Navy

  • Integration began in 2023, achieving full operational capability in early 2024.

  • Sustenance contract spans 7 years with potential extensions up to 21 years .

• NATO Vessels Upgrade Contract

  • Roughly US $9 M follow-on deal secured in late 2022 for additional KATFISH units, tentacle winches, and autonomous launch-recovery systems (ALARS) .

    
    
    

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📈 Valuation Snapshot & Market Outlook

• Analyst price targets: Average 12% upside to CA $3.40 (range CA $3.28–$3.68) over the next 12 months .

• Intrinsic value vs market price:

  • Simply Wall St: Fair value ~CA $3.28, placing current price ~7% below fair value .

• Key metrics:

  • Trailing P/E around 38× (Yahoo Finance), forward P/E not yet meaningful .

  • P/E ~42× vs industry avg. ~31× (Simply Wall St) .

  • EV/EBITDA ~28× vs sector avg. ~18× .

• Growth: Earnings projected ~8% annually; last year saw ~136% growth .

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🏆 Competitive Positioning

Strengths:

• Integrated solution platform: Combines advanced sonar (KATFISH™, AquaPix™), subsea LiDAR (SeaVision + 3D at Depth), batteries (SeaPower™), AUVs, and RaaS—enhancing defensibility.

• Long-term contracts:

  • Danish results show FOC achieved and a multi-year sustainment contract .

  • Canadian RMDS creates 7+ years of recurring revenue .

• Global adoption: 

• Deployed across the U.S., U.K., Australia, Denmark, Poland—plus mounting interest from NATO .

Risks:

• High valuation relative to peers: Premium multiples imply investor expectations for continued growth.

• Execution risk: Meeting ambitious contract delivery timelines across multiple large-scale programs.

• Geopolitical dependency: Much revenue tied to defense budgets, which can be cyclical.

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🧭 Investment Implications

Metric	Insight
Cash flow & margins	Large multi-year contracts with sustainment provide stable, predictable revenue.
Geographic diversification	U.S. and NATO footprint hedges trade/tension risks; Halifax location aligns with naval operations.
Valuation debate	Disagreement between growth-based models (Simply Wall St) and DCF-based (Alpha Spread); current price sits between fair-value estimates.
Catalysts

• RMDS ramp in 2025

• Further U.S./EU contracts via 3D at Depth presence

• Continued deployment of KATFISH on NATO-MCM vessels |

Conclusion: Kraken’s strategic positioning, recurring revenue pipelines, and expanding global engagement present a compelling growth narrative. However, execution reliability and valuation premiums warrant careful monitoring—especially given its ~40× P/E.

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Here’s a refined look at how NATO’s new 5% GDP defense‑spending pledge bolsters Kraken Robotics’ strategic positioning—and why it matters:

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🌐 NATO’s 5% Defense Commitment

• At the June 2025 Hague Summit, NATO members agreed to raise combined defense and defense‑related spending to 5% of GDP by 2035, defining 3.5% for core military expenditures (troops, weapons, ops) and up to 1.5% for resilience, infrastructure, cybersecurity, and industrial base ft.com+7sipri.org+7apnews.com+7usglobaletfs.com+9reuters.com+9en.wikipedia.org+9.

• While Spain received an exception, most members—including Canada and Eastern European nations—endorsed the target en.wikipedia.org+1atlanticcouncil.org+1.

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📣 What This Means for Kraken Robotics

1. Boost in Core Defence Procurement

   • With NATO countries winding up core defense budgets, there's greater emphasis and funding available for equipment like sonar systems (e.g. KATFISH™), underwater LiDAR, power systems, and autonomous platforms—all in Kraken’s portfolio.

2. Infrastructure Spending Tailwinds

   • The additional 1.5% of GDP aimed at dual-use infrastructure—ports, bridges, cyber, and shipyards—aligns perfectly with Kraken’s Halifax battery plant and its sensor systems used for marine infrastructure monitoring and readiness.

3. Special Defense Focus on Canada & Allies

   • Canada (currently ~1.3% GDP on defense) is expected to scale up significantly. Kraken’s Halifax facility—on the East Coast naval hub at a major NATO port—is primed to capture more contracts as defense budgets grow.

4. Leverage European/NATO Industrial Expansion

   • As NATO boosts its defense-industrial base under this plan, Kraken stands to benefit from increased R&D and procurement contracts across the alliance, particularly in the U.S., Canada, and Europe.

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📈 Strategic & Investment Implications for Kraken

Axis	Positive Impact
Revenue Growth	Larger NATO defense budgets widen pipeline opportunities for sonar, LiDAR, batteries, AUV deployments, and sustainment contracts.
Geographic & Industrial Push	Kraken's U.S. and Canadian build-out is well‑aligned with NATO’s spending surge, increasing its positioning as a key supplier.
Valuation Upside	Given Kraken’s high multiples (P/E ~40×), securing new, credible NATO contracts supports earnings growth and validates premium valuation.
Execution Risk	While budget increases help, Kraken must still deliver projects on-time and scale its capabilities to meet heightened demand.

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🧭 Bottom Line

NATO’s 5% GDP commitment is a paradigm shift in defense spending—a ramp-up that directly plays to Kraken Robotics’ strengths:

• Its full-stack subsea offerings — sonar, LiDAR, batteries, AUV deployment — become increasingly relevant.

• Its Halifax and U.S. footprint aligns with infrastructure investments and defense-alliances.

• With large-scale defense budgets unlocking in the coming decade, Kraken is uniquely positioned to capitalize.

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Related NATO defense‑spending news

NATO leaders agree to hike military spending and restate 'ironclad commitment' to collective defense

thetimes.co.uk

Nato summit 2025 - as it happened

Related Articles:

A shadow war is brewing under the worlds oceans. 

Release "The Kraken"!

Did Desjardin just Release the Kraken? - Kraken Robotics Investment and Business Report (June 2025)