Conference in S.F. Jack titled his presentation " Who Will Win The REM Production Race From The Companies Outside China?"

He started by stating:

A. Tremendous interest in REM's
B. China hinting on ending the export of REM's
C. China with a ten year reserve and was told @ conference by an associate just back from China they only have a 6 year reserve.
D. REM's demand only rising from this point forward.

E. Expanding product line requiring REM's

He quickly dismissed most REE companies (although he mentioned a few he met @ conference that showed some promise but are many years away from production) and narrowed the field down to the following four.

1. GWMGF
2. AVL
3. LYSCF
4. Arafura Resources

He also stated Molycorp (privately held) is a potential player and the last to mine REE's in the U.S. That they own the largest HREE reserves by far in The U.S. Were the last to mine REE's in 2002 and still have a 6 year REE reserve.

He quickly declared the winner GWMGF forecasting production beginning between third quarter 2011 and third quarter 2012.
AVL next and forecasting production sometime in 2013.

He said no company will be able to out produce AVL. They have massive deposits.

He didn't think non production announcements will in general significantly move PPS.

He stated the first to announce the production of REM's will create a "whole new ballgame and will trigger massive investment in REM's..

He also stated he thought one of the two (GWMGF or AVL) would buy out Molycorp.. He added that by 2015 both companies will be selling to China.

I cornered him after his approx. 30 minute presentation to get clarity on whether he thought the first to produce would have any advantage over the other and he said no. But I am not quite sure he understood what I asked as there were about 5 others peppering him with questions at the same time. During the presentation he seemed to place great emphasis on the first to produce yet mentioned in the next breath that AVL will out produce all and have superior reserves. I don't think he mentioned that one of the two would buyout Molycorp for nothing. It would seem to me that the first to produce will garner huge investment capital advantage that could certainly be used to buy out others.

One thing I learned-it takes about 18 months from the beginning of the chemical mining process to actual production of REM. You just don't turn a switch on and produce rare earth metal.

The conference was mining investor's mother lode.. Dozens of companies with booths and providing presentations. I was sorry I did not attend until this afternoon. Discovered a few companies I am going to take a hard look at..