This is not a correct analysis. GGG har partnered with Shenghe to optimise the mining and processing to the mutual benefit of both parties, with GGG receiving the benefit of Shenghe’s experience in REE processing and a potential offtake for part or all of mine production, and Shenghe partnering with a potential source of unprocessed/partially processed REE.
Shenghe at present only own 12.5% of GGG, acquired on market terms, and is in no way ‘in control’ of the company. In addition, there is uncertainty relating to how much of an increase in Chinese ownership, if any, the Greenlandic government would allow, likely limiting the ability of Shenghe to secure significant control.
GGG Price at posting:
8.2¢ Sentiment: Buy Disclosure: Held
