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ALK

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54.5¢ alkane resources limited

so the pump has started .... lets see how far the can push it up...

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longtermlegs

3,237 Posts.

19/01/15

21:08

Post #: 14606990
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Originally posted by longtermlegs ↑

the laws of supply and demand apply in free market economies

in the world of REE it is anything but a free market - the Chinese still produce around 97% of all HREEs, and as a result set the prices not only for the HREE but also for the LREE, in effect both Molycorp and Lynas are price takers - because China is the dominant producer it sets the price of what they produce

anyone that thinks Lynas and Molycorp can survive where their major competitor sets the prices for what they produce had better review the sea of red ink in their trading results thus far

any Alkane investor expecting China to do them any favors had better think again - just look what the Chinese have done to Molycorp and Lynas ..... simply by setting the prices of what they produce

we are told by Jack Lifton that the day has arrived when Rest of World users of rare earth elements - especially the critical rate earths realize they can no longer rely on China as their sole supplier. Jack tells us that global 1000 companies - the biggest companies in the world (I guess he is referring to likes of Siemens, Hitachi and Sumitomo etc.) are now investing in junior mining ventures in an effort to bring on non-Chinese suppliers of critical rare earth elements

it will be interesting to see how it all plays out, because you can bet those same global 1000 companies will not want to pay any more than the prices China sets - if this eventuates it means only the best of the best projects will survive - and I think that excludes Lynas and also Alkane with it's $1 billion dollar capital expenditure requirement

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so the pump has started .... lets see how far the can push it up from here

ALK Price at posting: 24.0¢ Sentiment: Sell Disclosure: Not Held
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