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$6.95 lynas rare earths limited

Short Squeez, page-19

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ausheds

15,535 Posts.

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27/02/19

10:05

Post #: 37582519
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Originally posted by ContraryJ ↑

Originally posted by ausheds
Silly self obsessed thought bubbles constructed to suit a narrative, as usual drawing on a very narrow, selective POV which totally ignores the three major impacts on Chinese RE production ATM.

First obviously weakened demand, strongly influenced by trade war, second debt carried by RE SOE's, third cost impact environmental compliance, which the State is also using as a tool to eradicate illegal over quota production:
Impact of environmental protection tax levy on rare earth industry

2019/2/22 9:17:39 Source: China Rare Earth Portal

As the first one-line tax law in China that specifically reflects the “green tax system” and promotes the construction of ecological civilization, the Environmental Protection Tax Law was officially implemented on January 1, 2018. At present, provinces across the country (except Heilongjiang and Tibet) have announced the specific applicable tax amount of environmental protection tax in the region according to their own development. According to industry predictions: After the environmental protection tax is levied, its tax credit will far exceed the current scale of environmental pollution charges. In general, atmospheric, water pollutants and solid waste discharge units are the most affected. At the same time, the taxation of taxation targets and the establishment of tax incentives such as preferential incentives and adjustments will also greatly promote the transformation and upgrading of related industries.
The collection of environmental taxes can be said to be a re-segmentation of corporate interests. The rare earth industry is a major emitter of “water, gas and slag” in the whole non-ferrous industry. Among them, rare earth mining in the upstream of the industrial chain , especially the mining and selection of ion-type rare earth ore in the south, due to the use of pool dips and heaps in the early stage. In the process of immersion mining, a large amount of rare earth tailings are produced in the production process, and the rare earth tailings (垻clear.png or the reservoir (垻clear.png are left idle, and a large number of rare earth solid waste mines are not properly disposed and comprehensively utilized. Be taxed as taxable solid waste for the current period. At present, the rare earth in-situ net well cloth leaching method widely used in the southern ion-type mines does not destroy the topsoil vegetation of the mountain, but the perfusion leaching agent (such as ammonium sulfate) makes the rare earth mineral leaching liquid product contain a large amount of acidity. Wastewater, the collection and treatment of this kind of wastewater, due to the wide variety of points, requires a large and complicated network of pipes to collect and collect liquid, thus the environmental protection investment is large, the operating cost is high, and the direct discharge is subject to a high pollution equivalent tax. The subsequent selection and smelting separation process in the rare earth industrial chain, because of the high concentration of salt in the discharge water quality, determines that the treatment process cannot directly adopt the biochemical treatment of low operating cost, and most of the rare earth industrial chain wastewater needs to be treated with tertiary wastewater. Design can meet the standard, and the high operating costs make the company overwhelmed. In addition, in the process of smelting and separating, the rare earth will also produce corresponding exhaust gas, solid water leaching residue and acid slag, which will also increase the taxable production cost of the enterprise. The implementation of strict pollution equivalent taxation will force the rare earth enterprises to face a dilemma in the short term. It can be said that the outstanding pollution control investment is the key to restraining the rapid development of China's rare earth industry.
The current environmental taxation will have a certain impact on the tax burden of the rare earth industry unit in the short term, because the environmental tax is a fixed tax rate, and the difference in corporate tax burden will ultimately be reflected in the competition of product prices. From the perspective of the long-distance effect, the “pain” caused by the environmental tax burden will force the rare earth industry to adopt transformation, eliminate the production of high-emission and high-pollution products, upgrade and adjust the product structure to excess capacity, reduce the size of the enterprise, and enhance the product industry. A series of technical measures such as concentration. On the other hand, it also reflects the early stage of environmental protection, and the early development of pollution control, transformation process of rare earth enterprises, environmental tax burden will not increase, but also a larger trend of decline, because of taxable environmental indicators To achieve the standard, not only can save environmental protection costs, but also strive to obtain preferential treatment in the national tax collection and other industrial policies, the enterprise ultimately reflects the benefits of energy conservation and environmental protection.
The only way for the rare earth industry to respond to the environmental tax levy is to focus on the innovation of the company's own technology and the improvement and upgrading of production technology. Although there will be continuous environmental protection investment to increase production costs in the short term, the burden will be flattened from the long-term cost-benefit ratio reduction, the reduction of environmental tax payment and the increase in energy conservation and consumption reduction, and the comprehensive recycling utilization.

CNRE:

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Your presumption Japan would "stop growth" is utter nonsense , so to "Mt K will want cash for remaining shares in 16 months", complete keyboard concoction without substance.
What does anything that you say here have to do with shorting activity on Lynas stock??? I am totally lost as to what you are trying to say.

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My bad, tagged the wrong post, basically thought this was nonsense:

"China could totally stop Lynas growth if they wanted to. REO prices are low right now. Taking actions to lower REO prices even another 5% would kill all Lynas profits and totally disable them from growing or paying debt. They could also do something like lower Ce and La 10% Lynas biggest volume product and only depress NdPr a % or two, the key component of China's magnet and motors growth."

LYC Price at posting: $1.80 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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Last $6.95		Change -0.035(0.50%)		Mkt cap ! $6.552B

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