RE: Cartel22 Nov 2018 00:36
“the existing cartel is both powerful and employing underhanded tactics to get spanners in the works.”
——
Not surprising in the least really. Anyone who hadn’t considered that established enterprises wouldn’t do what they could to guard their piece of the cake from any ‘disruptive’ new product, hasn’t fully weighed the arguments for and against imo. Having said that, money will always look to make money, so if our product really is as effective as the majority of us believe it to be, then a really good salesman should be able to find backers with sufficiently deep pockets to make it a goer. The question is, in addition to all the other key competencies our CEO has demonstrated, do you believe he’s capable of finding the requisite funding to put in place the last piece of the jigsaw? Large project finance is supposed to be his forte, and having proved himself adept at raising large sums of money in the past are we to conclude he cannot repeat the trick this time around?. Granted, the iron business in 2008 when China was still booming was a somewhat different proposition, however, we all know that short of apocalypse, global food demand is only going to go one way also, so the most basic requirement for success is already there at least.
That said, bearing in mind our chairman’s past experience and his credentials, I must admit to being somewhat underwhelmed with the interest in our project from China thus far, and perhaps we may still see some substantive involvement from the Chinese yet. However, whilst both of our Chinese TorP agreements with Eiliseng and YSA stand up to some level of scrutiny - and there is a case to assert that both companies will grow with us (pun intended) - I cannot honestly claim that that I am entirely convinced by them.
As for any power our competitors may deploy, I guess that could range from ‘soft’ power in th3 form of undermining, discrediting, or dismissing Poly4’s credentials, to ‘hard’ power manifest by production ramp ups, heavy discounting, special deals etc. But hey, that’s business. It happens in all industries and I am absolutely certain it is something Chris and team will have given much thought to, and I don’t doubt will have come up with the appropriate strategy to address or mitigate it as effectively as possible.
I guess what I’m trying to say is yes, possible attempts to subvert or nefarious tactics by interested parties are something we should all anticipate, but it’s not little Sirius Minerals going all alone against the big boys here. If our project really is worth its salt (yes... I know), it will find backers regardless. Current investors can only hope their demands are not too hard to swallow.
Regards,
per ardua ad astra
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