investor update, page-10

I agree KK and that is the guts of the issue. "They want" total control and "I want" then to give us $2 per share but neither is reasonable given what we all know. I suggest that in the real world people sit down and negotiate a deal on middle ground. Both parties get a good outcome but neither usually get exactly what they want. The appropriate and acceptable deal is something different to what has been put before us as it is unnecessarily one sided.

All I'm suggesting is that if we say "yes" then we are simply capitulating and giving them whatever they ask for rather than telling them that we appreciate their offer and are happy to talk about more mutually agreeable terms. We lose nothing by saying "no" to this particular proposal but doing so will prove that GBE shareholders arn't a pushover and that we want to be part of our companies future, not silent idiots to be ignored as is currently the case.

ECE won't walk away because they have a lot invested in this and there is way too much profit to be had for them to throw their toys out of their pram just because we insist on retaining our legal rights to vote on aspects of our companies future.

I suggest that we should also consider who is running our company and representing us in these discussions and decide if we are being appropriately represented. If not a resolution should be added to the EGM agenda to resolve that in order to proceed with negotiation with ECE and/or discuss alternate partners.

A much better deal can be done here and one that we could all accept. I'm not against doing a deal with ECE or anybody else, I'm just against the details of this deal that arn't in our interests. Mark knows this which is why he appears to have been hiding from us since hatching it. He surely knows that some aspects of the deal are indefensible so he won't engage with us.

We know he reads these posts as he almost quotes us word for word in part of his presentation. Sadly his attempt to mock us with snyde comments is completely misplaced which demonstrates that his failure to engage with us has resulted in him misunderstanding what we are trying to say or he simply doesn't care is thinks this type of illogical response is sufficient for simpletons like us.

Lets look at his interesting yet flawed logic: "Ferro-niobium is consumed by the same end-users as iron ore and coking coal, being steel mills. The likelihood of the Kanyika Niobium Project being ?mothballed? defies market realities."

What Mark apparently fails to appreciate is that the Iron Ore is purchased by the Chinese in vast quantities because China is a net imported of of vast quantities of iron ore. China therefore have an interest in seeing supply of iron ore increased to reduce the price they have to pay.

Exactly the opposite is true of rare earths. China complete domination of the world rare earth supply makes it a net exporter of huge quantities of rare earths and has gone out of its way to restrict supply and force the price up to maximise their profit. Thats market reality and not just speculation. It is already happening for all to see. Govts around the world are alarmed by it and it is the subject of many leaked diplomatic posts so we know its no illusion.

Mark wants us to believe that just because some of the minerals are destined for the same places means that we should expect the same outcome despite the obvious competative differences between iron ore and rare earths producers. He also expects us to overlook reports in the Chinese media that the Chinese Govt is in the process of setting up a rare earths marketing board to control the export quota of said minerals and further control prices. According to Mark something that is actually happening "defies market realities". Not sure what realities you are talking about Mark but "reality" to me always meant something that actually happens rather than what you want people to believe will happen after they have already agreed to give up all their rights.

Just think of this like election promises. What they say now is just to convince you to give them your vote and allow them to do whatever the hell they like as soon as the resolution is passed.