In addition to my previous 2 questions which nobody has yet...

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Few Pennies

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19/03/18

17:17

Post #: 31864039
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Originally posted by Few Pennies ↑

thanks
OK my understanding from reading the yearly report, is that NTU is going to get paid for the the product it mines by Lianyugang which is 51% controlled by a very large supplier Guangdong Rare Earths Group, which is part of a larger chineese group comprising six rare earth companies which works together as a team under the guidance of Chineese Vice-Minister of Industry and Information Technology Xin Guobin.

Those six companies under the guidence of Xin Guobin are: China Northern Rare Earth (Group) High-tech Co Ltd, China Minmetals Corp, Aluminum Corp of China, Guangdong Rare Earth Corp, China South Rare Earth Group and Xiamen Tungsten Co Ltd.

China currently controls 95% of the production market for dysprosium.

The price at which NTU will be paid for its product is going to be based upon a world metal price index.

I beleave that this company is at too much risk that the possability (which I see as highly likely) for this chineese group to have the power due to their size to affect the prices on the metals index to their purchasing advantange, and thereby able to aquire offloads of NTU's dysprosium at bargain prices.

This massive Chineese group could potentually manipulate market prices to suit themselves, and not neccarcerily the investors in NTU.

China clearly want to control this market and I seriously wonder if the chineese deal with NTU is part of their strategy, and NTU is is the victim.

1. So what safe guards does this supply aggreement have built in to avoid market manipulation which is so hard to prove?

2. does the company have a plan B that can be implimented if the chineese appear, to be or are suspected to be manipulating the world price?, and is it even possable for them to change direction as agreements and money have already changed hands?

FP

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In addition to my previous 2 questions which nobody has yet answered
the plot thickens;

As well as the restructuring, Xin said in future China will continue exercising tight controls on rare earth mining, smelting and production quotas, and investigate and prosecute illegal and unauthorized projects.

Could NTU falling into the hands of Xin's chineese price control's be good for our share price or better for the chineese to milk it to their advantage?

FP

NTU Price at posting: 8.5¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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In addition to my previous 2 questions which nobody has yet...

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