Between a rock and a hard place, page-15

This week's article on investorpov.com brings about a question that I don't have an answer to. In that the Chinese have tried to keep prices down to the detriment of Lynas, why is Lynas selling 47% of its output into China? And at what price?

Secondly, why does Lynas have only four major customers? Japan and China make up approximately 80% of Lynas's client base. As the article above asks, what if the Chinese renege on their agreements next year? Where does Lynas off load 47% of its output when it has only four customers? (You can sue but Lynas will be dead and gone before the case comes to trial.) Why has Lynas not made any inroads into North America?

investorpov.com might have a point: Lynas is controlled by China through short sighted actions by Lynas management who may have taken the easy route to orders rather than having built a large commercial customer base. Airbus is like Lynas; lose one major airline order and you can be in deep financial troubles. The only difference is Airbus realizes this.

When one customer owns 47% of your output you work for that customer. As with investors, so with customers: diversify!