Well, it's official, MP Materials is turning to the debt...

Well, it's official, MP Materials is turning to the debt market and issuing UNSECURED Convertible Notes to sustain operations.

As I suggested before, their flawed business model and dependency on their Chinese owners and technologies are coming home to roost.

I must admit, i am not entirely sure why they made an investment in South East Asia for RE minung extraction, but I am now certain that the markets will run from MP Materials. I. todays trading, it may be break-down into a 13.00+ print. Effectively whiping out 60% of its market capitalization in 16 months.

The U.S. government will have something to add to this breakdown. IMO, it is unlikely that they will allow MP to continue to fly solo and may insist that it decouples from its Chinese ownership.

This action of raising capital will either reinforce LYC as the preeminent RE player outside of China, or it could start a scare for the sector, which is really not in our share price interest.

THANK GOD, LYNAS DID NOT BUY THAT OR MERGE WITH THAT DOG.

Tough day for C.J. and his B.S. predictions. Proof positive that he knows nothing about this sector, other than bashing businesses that he knows nothing about. Luckily, I have him on ignore, so his silly rants dont affect my feed.

All eyes are now pointing at Lynas. A press release affirming business operations would be most welcomed after MP's announcement today. A possible run-up on the stock may be in the cards, as Lynas is working almost as a monopoly for the western hemisphere.

I would even call Lynas a STRONG BUY at this point.

The opening in Sydney tonight should be very interesting. One way or another.



GLTA