I read a good article by SeekingAlpha some time back that spoke to this topic of China's control of the REE price. It made the point that China will try to develop a downstream REE business (to boost employment etc) but knows domestic supply will run dry in about 20 years. As such they will need non-chinese supply from about 2030 and to achieve that they will need to maintain REE prices, from now, that encourage development of non-chinese deposits. Thats to say, if they are to manipulate the REE price it will be in favour of companies like Lynas. It made sense to me. Ill post it if i can find it.
Cash looks like a key issue now. Will they run out of unrestricted cash in Oct?
LYC Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
