"Meanwhile, smuggling, illegal mining and black market dealing should be strictly prohibited''
Why didn't US law enforcement think of that, those Chinese are much smarter than the rest of us!
I did not perform an environmental study on their project, the projected cost is $390 million, I assume that includes the environmental compliance.
Do you think that Paul Zink is another BS'er in the likes of Smith?
You are quite right in saying that MCP is no worst than Lynas.
However when you pull the mcp chart and overlay SPY what do you see?
''Take your stupid stuff to the corner bar.
The idiocy here is beyond belief''
Operating cost = $11,75 (for first nine years
Product Pricing = $32,31
Assumed discounted (25%) basket price/kg (ASP) = $24.50.
after-tax internal rate of return (IRR) of 29%.
“Given Bear Lodge’s long Project life, the fact that it is expected to deliver a solid after-tax return using the low average rare earth prices over the past year is only part of the story,” said Paul Zink, Senior Vice President and Chief Financial Officer. “Looking beyond the IRR, one has to appreciate the more than 40-year Project life, the low capital cost, the short construction cycle, the ability to mine a high-grade core for an extended time,''
Just looking these guys up, Found this interesting:
May 2013:the rare earth metals demand was worth USD 3.93 billion in 2012 and is expected to reach USD 8.19 billion by 2018, growing at a CAGR of 13.0% from 2012 to 2018. In terms of volumes, global rare earth metals demand is expected to cross 290 kilo tons by 2018.
August 2014:Rare Earth Metals Market demand was worth USD 3.93 billion in 2013 and is expected to reach USD 8.19 billion by 2019, growing at a CAGR of 13.0% from 2013 to 2019. In terms of volumes, global rare earth metals demand is expected to cross 290 kilo tons by 2019.
The shorts may have benefited from subsidized capitalism in China, but that is besides the facts. The investors need to consider all the variables, risks, even the know unknown, etc. which may affect the PPS of a stock.
The shorts have done a good job of reading the overall situation and many longs have and continu to underestimate them (whether rightly so, only time will tell if the prophetized mother of all short squeezes materialises, could still happen).
In fact the shorts have recognized the trend since 2011 and invested accordingly, then have taken the risk and some have won (those who covered) and the rest have very nice paper gains.
Lesson learned, investing against the trend and trying to call a bottom or a turn around is a difficult and dangerous game.
The low PPS does not seem to stop some longs from spewing their non sense, why would it affect my postings?
If 11 million shorts covered and the PPS down 62% since 5/15/2014, you may want to ask where is the long anticipated short squeeze!
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Author’s reply » Adam,
The Shock Exchange does not necessarily think the company is headed for default. If so, that won't occur until the first half of 2016, if at all. That's probably why the default probability is so low.
According to Benzinga: Molycorp (NYSE: MCP) - 7% Shares slid after downgrade from Euro Pacific.
As for Apple, it is always possible to find examples to cover all times of situation. But it is true that I would probably not have classified Apple as a quality name back when they were in Financial difficulty.
The bottom will come when there is a reversal in the price of REOs (Rare Earth oxides produced by the resource segment = Mountain pass mine).
" Your guess is as good as anyone else's guess."