The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There is no solid information in that RNS to make any sort of judgement.
Except, they have paid out a non refundable 150k for an asset that will cost almost as much as the current MCAP.
Non JORC and trust-me-bro.
The article is out of date, RBW will get 25% higher prices than China due to the new duty that the US government is applying.
And yes, RBW will be THE lowest cost producer in the world.
REETech is always posting positive articles for RBW, he doesn't understand why, but hey ho.
Its explained on the website, but its about 2% cut of the gold price on average, I think.
If they cannot raise the financing easily, they can stop the dewatering process and give themselves several years runway to sort out the funding.
The dewatered miner is a mortgageable asset, valued at 55million. They could use this as equity.
Not shorting.
Someone said Boo and the sheep ran for the exit.
I'm taking the buying opportunity.
It was never worth 5m.
“Following an in-depth review by the United States Trade Representative, President [Joe] Biden is taking action to protect American workers and American companies from China’s unfair trade practices,” the White House said.
Imports of Chinese permanent magnets will be subject to a 25% tariff beginning in 2026, the White House statement said.
“There are several types of permanent magnet but around 80% of the market is dominated by two of them: sintered neodymium iron boron [NdFeB] rare earth magnets, and hard ferrite magnets,” John Ormerod, head of magnetics and metal consultancy JOC, said.
Other types include samarium cobalt rare earth magnets, alnico (aluminium-nickel-cobalt) and bonded NdFeB rare earth magnets.
Sintered NdFeB rare earth magnets are critical components in the motors of electric and hybrid vehicles and in offshore wind turbines, along with many other industrial, defense, medical and electronics applications.
The first time critical minerals have been included in tariffs
There have been numerous rounds of Section 301 tariffs since the start of the US-China trade and technology war in 2018, but none of them has included rare earth magnets or materials.
According to Tuesday’s statement, “the tariff rate for certain other critical minerals will increase from zero to 25% in 2024.”
https://www.fastmarkets.com/insights/us-to-impose-25-import-tariffs-on-chinese-rare-earth-magnets/#:~:text=There%20have%20been%20numerous%20rounds,to%2025%25%20in%202024.%E2%80%9D
There is a reason companies don't list on on exchanges like this. No liquidity.
That even applies to Australian and Canadian companies who list in London.
Lifton further elaborated, “The supply chain is significantly impacted here. However, I want to caution that this allows the maintenance of high prices for these items in the United States and encourages price increases because many in the rare earth sector, especially the junior miners, are not profitable. By adding 25% to the price, they can sell their rare earth elements for 25% more, based on the contained value in a magnet from the Shanghai metal market, for example. This could make them profitable. Therefore, this change is going to trickle down to the miners and will definitely have an impact. This is a significant shift because, interestingly, a 45% tariff on magnets implies that, since the prices of magnets and rare earths fluctuate daily, the tariff ensures that the price on the day of sale or purchase will be 25% above the stated Chinese price, likely from the Shanghai metal market. This is a substantial boost for the rare supply chain. I’m not sure it benefits the American consumer, as it certainly won’t lower prices at all.”
https://investornews.com/critical-minerals-rare-earths/us-tariff-policy-towards-china-designed-to-alter-competitive-landscape-for-graphite-and-magnet-materials/
no, the news is china is ****ti itself over re competition.
The primary causes of this decline in profits are China's economic problems and other nations' readiness to establish their own supply chains for rare earth elements. China has long held a commanding position as the world's largest producer of rare earths. But the nation's industry ministry recently admitted that rare earths now remain "undersold" and "wasted" as a result of "vicious competition."
https://oilprice.com/Metals/Commodities/Chinas-Rare-Earth-Dominance-Faces-Challenges-As-Global-Supply-Chain-Shifts.amp.html
However, processing PG for the extraction of REEs and other valuable elements had not been industrially realized
Well it has now, pea brain.
Https://www.eenews.net/articles/dems-express-grave-concern-about-funding-for-rare-earths/
The top Democrat on the House Select Committee on the Chinese Communist Party is urging the Biden administration to focus more federal funding of rare earth elements, a key ingredient of wind turbines, electric vehicles and defense applications.
The top Democrat on the House Select Committee on the Chinese Communist Party is urging the Biden administration to focus more federal funding of rare earth elements, a key ingredient of wind turbines, electric vehicles and defense applications.
They can buy 10/30% of the mine. Doesn't affect the royalty payment.
That's another 5% annual return looking secure.
Don't think equity raise will be necessary. A dewatering, refurbished mine is valuable collateral.