New regulations regarding export of REE from China, the...

New regulations regarding export of REE from China, the permanent cleaning up and consolidating of the local industry plus the latest price trends in rare earth give JP Morgan solid support for a massive re-rating IMO.

The moves in China are nothing to do with short term prices or any regard to what has occurred in the past, from now on rare earth is to be handled like any precious resource in China. In short it must be priced to meet the true cost and the true cost must include whatever is needed to keep the industry clean and safe, it is a 100 year plan across many prior dirty and dangerous mining practices not just rare earth but a whole host of them. The single feature with rare earths which is a little different is that in the past large volumes of illegal production and invisible exports has left the place in a mess, hard to count the product or its quality let alone tax it. We have seen a seismic shift in the way the major player wants to manage rare earth knowing fully well that few if any will be able to do much about it. The most important string of information for holders is confirmation that bagged sales from Lynas is all on target, so far so good.

For the holders of Lynas who are interested in things a little closer to home the obvious re-rating could have been done effective from the Chinese announcement, how long this is delayed could depend on who is accumulating prior to any upgrade, would our honest brokers do such a thing.

GL to holders who have suffered plenty.

DYOR!!!