Lynas versus MP, page-3

From the bonita report:

We believe that since 2Q’21, MP and Shenghe executed an abusive transfer price manipulation scheme whereby
Shenghe overpaid for MP concentrates to artificially inflate MP’s profits. The 2021 scheme conveniently coincided
with the SPAC insider lock-up expiration so that MP Insiders could sell MP stock at artificially inflated prices.

As a result, Shenghe’s profits collapsed, MP’s profits soared, and MP Insiders dumped US$ 400+ million worth
of MP stock in 2021 (this figure may increase as we await Shenghe’s yearly reported changes to MP shareholdings).

Evidence of transfer mispricing first appeared in 2Q’21 Chinese Customs records and Shenghe’s Chinese quarterly result segment disclosures. Chinese Customs records show 2Q’21 was the first time that Shenghe paid MP above
market price as compared to Shenghe’s reported resale price. Shenghe’s Chinese filings show that in 2Q’21 & 3Q’21,
Shenghe’s gross margins collapsed to 4% and 0.3%, respectively, down from ~25-30% on average since 2018.
Results from a 3Q’19 German academic economic feasibility study concluded that MP’s ore is not economically
viable to harvest for rare earth metals while 12 of the 13 other well known rare earth mines outside of China are
economically feasible at today’s current market prices.

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oooopsy Caught with the hand in the cookiejar. Nothing that should impact Lynas' share price in a negative way.