REE Market Competiton Changes, page-9

Hey Zogeel.
I agree with you.
However the Pitt research value is a current valuation of 18-43 cents. Also I think their capex prediction is way too high. However this is a pricing for now and preML. Other analysts predicted the same range and then went on to $1 plus post ML operations.

Finally I am aware the Greenland ministry once investigated the 60% Shenghe holding proposal and had no objection to it. Maybe the Danes would step in but we haven’t seen anything yet published stating they will.  In fact the Danish Minister of Defence has stated they invite Chinese commercial operations and ownership. Just not in the ownership of projects of an infrastructure nature that offer any strategic value eg ports and airports

.I do think Shenghe may try bribe Greenland officials. That sword cuts both ways for us though.
First to pass the mining licence. That’s not hard to achieve without alerting the public and I am sure we would be happy with Shenghe trying to bribe there if it helped getting things through..
However making adjustments to reduce the share price later on would certainly be more publically obvious via the net effect.
Finally the Greenland Government have an impressive emerging record so to attract foreign investment. I cant see them making extreme examples to jeopardise that and risk ill effecting their upcoming stance within the international community. They already are trying hard to attract financiers to come into their country they know will be required for most their projects and they know playing fair and sound is the only way they will.I suspect they will stick to their guns in following in the footsteps of their European brothers conductI feel that lets say, even if bribes did get through.

The only way Shenghe could get the situation into their favour for reducing share price would be quite difficult once a holder of 60% (much easier when they aren’t a holder yet and they try buy in which is the practice we fear eg Lynas)In this case,, as a 60% holder, they own a considerable amount of the company. Devaluing the share price risks a large loss on their books. (although temporary it will still ill effect their share price back home in China well as GGGs. Something they will dearly wish to avoid). Note LYC is over exposed due to not having a Chinese partner and so destroying the company wont destroy any Chinese stake and doesn’t act as a deterrent to the Chinese there.

The only real way for Shenghe to reduce share price is to somehow threaten the ML during operation and post ML approval.. This would be a crazy move again as you could understand As it threatens the whole operation with themselves included at a 60% stake. Again Lynas is very different as there is no loss to the Chinese and all to gain should Lynas lose its licence.

Id like to look into this matter more if anyone knows of situations where an existing Chinese takeover happened of a dubious nature once they are already significant shareholders. If you know of any please supply them here. The only ones I am aware of is when they are offtake partners only or maybe financiers where they have no holdings and their might effects share price where it THEN allows room to buy in. Different storey

.Keep in mind SHenghe are functioning totally in compliance in the Mountain Pass project. If we are to fear any cracks in their operation. Due to the size of the Moly deposit we could expect them to play such games their first.

For now I don’t think we are in a position for them to try anything as it would just shoot them in the foot in value of their own company and their own shareholders would be up in arms. I suspect the only true path is by buying out existing shareholders on sp dips in time up to the 90% mark and we would see that coming. It also adds to buying pressure and we already see the effect upon sp by GlobalX selling out. So a reverse of that would simply add to the sps support and value really..