The opposition has started to play dirty !9 Mar 2021 05:38
Q. Why are Lynas trying to talk the RE market down ?
A. Because they are worried that when Pensana starts producing Nd Pr there will be an excess of By-product which is going to crash their HREE margins !
I wonder who dumped a heap of Nd / Pr onto the Shanghai Metals exchange today in an attempt to give the story credibility ?
Mar 2, 2021,11:30pm EST|18,021 views
China Shoots Itself In The Rare Earth Foot; Again!
https://www.forbes.com/sites/timtreadgold/2021/03/02/china-shoots-itself-in-the-rare-earth-foot-again/?sh=6d3765401db0
Extract :-
"In Australia, Amanda Lacaze, chief executive of Lynas Corporation, that country’s biggest rare earth producer warned last week that there was a risk of “overbuilding” mines and processing facilities because of the concern about a Chinese export embargo.
Lacaze said that an inefficient allocation of capital, one way of describing construction of excess capacity, would result in losses for investors.
Her warning followed news of successful capital raisings by emerging rare earth producers, such as Hastings Technology Metals which attracted $78 million (A$100 million) in fresh funds for its Yangibana project in Western Australia (WA) and report that specialist titanium minerals miner, Iluka Resources, was negotiating with a number of governments seeking rare earths from a proposed refinery also in WA.
Similar moves to boost non-Chinese supplies of rare earths are underway in the U.S. and Canada, encouraged by a U.S. Government study into supply chain vulnerability of critical minerals.
The rush to develop alternative supplies of rare earths, amid Chinese embargo threats, is shaping as a re-run of a 2010 war of words between China and Japan over a fishing dispute which led to a Chinese rare earth ban and Japanese funding of the Mt Weld mine owned by Lynas.
History might not be repeating precisely but the foundations are being laid for the development of new rare earth mines and the more technically challenge business of processing outside China.
As it was with Japan 12 years ago the cost of ensuring supplies of essential materials is not yet a major factor in what’s being planned and that is what worries Lacaze who has been in charge of Lynas during booms, such as now, and busts such as that which saw her company survive a near death experience after its share price crashed from an all-time high of $19 in 2011 to 26 cents in 2015.
Strong demand from military consumers of rare earths as well as makers of electric cars has seen Lynas shares surge higher over the past few months, including a rise of $1.90 (58%) to $5.11 since early January.
Weaponizing rare earths, which is essentially what China did in 2010, and what it is threatening to do today is a double-edged sword which might create concern in some countries but which also ensures a future surge in price crushing over-supply."
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