You cannot always be in the spot-light. You cannot expect to attract people’s attention all the time. It is not possible to be a winner every day. Sometimes you need time to relax. Especially when you have just managed to achieve something memorable.

Perhaps this sounds true for the recent performance of Great Western Minerals Group Ltd. (CVE:GWG), (PINK:GWMGF) stock on the TSX Venture Exchange. After managing to climb 12.7% up during the last day of February, the shares began slowly to descend on the CVE and pulled 8% back, finishing at $0.82 on Friday.

Great_Western_-_Chart_mini.pngThe negative move was typical for the stock performance over the last month, with a few exceptions. During that period, GWG lost 25.5% of its value.

However, this decline comes after a 2-month period of steady appreciation of the shares. It led the stock to a new 10-year price high of $1.23 in early February. Despite the mentioned roll-down, currently GWG is worth 116% more than in the beginning of December.

It seems the shares decided to rest for a while after reaching this memorable price record, probably preparing for their next jump on the markets.

Over the last two weeks, Great Western released several positive developments that had only a short-time favorable effect on the stock price. They could, however, also support an up-move of the shares in the future.

Perhaps the most important announcements were the commencement of an exploration program at the company’s Steenkampskraal mine in South Africa, the exercise of warrants for gross proceeds of almost $8M, and the completion of the purchase of 92.6% of Rare Earth Extraction Co. Ltd (“Rareco”) outstanding shares.

Nevertheless, Great Western has some problems to solve if is aimed at success. For the third quarter of 2010 the company reported a net loss of $1.09M. The mentioned Steenkampskraal mine is expected to start production not earlier than 2013.

0Great_Western_-_Logo.pngBesides, at present Great Western seems to be overvalued by investors. Its market value is about $290M. This is not supported by the company’s fundamentals – the net worth of business is only $32M.

Great Western could profit from the advantage of being in the frenzy rare-earth sector. Rare earth elements (REE) became very attractive to investors outside Asia, after China decided to reduce its REE export quotas.