Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I recently took a small position in MCP at $3.25 thinking to capture a bounce. There was no bounce and with the stock at $3.03 I am thinking of just exiting the trade for a small loss (I have gains elsewhere, no biggie).
Talking it over with my wife, she became quite enraged not at the stock pick but at the situation with rare earth elements (REE). MCP was formed as a response to China cutting back exports of REE. They purchased a shut down mine at Mountain Pass, California and proceeded to invest a lot of money and equipment to do environmentally friendly mining of REE. There have been problems with ramping up production which came at the same time REE prices plummeted. The WTO has ruled that China cannot limit the supply of REE even though China claims it wants to limit them for environmental reasons (it is pretty ghastly how China currently mines REE).
I now think MCP will go bankrupt or at least be forced into major dilution. There does not seem to be any desire by the world to have a source of REE outside of China. MCP needs a zero interest loan to allow them to weather the current low REE prices while they work the kinks out of their waste water recycling mining method. I find it a little funny that we give Tesla carbon credits for making electric vehicles but there is no help for a mining company which wants to produce elements essential to making those electric vehicles and produce them in a environmentally friendly fashion.
So it is with some regret and anger that I think I will sell my little 1000 share lot of MCP next week at around $3 (hopefully) and then sit back and watch as China continues to dominate the REE market and force manufacturers to build technology inside China if they want access to these REE.
Sad, but it has been an eye opener in how the world works.
Talking it over with my wife, she became quite enraged not at the stock pick but at the situation with rare earth elements (REE). MCP was formed as a response to China cutting back exports of REE. They purchased a shut down mine at Mountain Pass, California and proceeded to invest a lot of money and equipment to do environmentally friendly mining of REE. There have been problems with ramping up production which came at the same time REE prices plummeted. The WTO has ruled that China cannot limit the supply of REE even though China claims it wants to limit them for environmental reasons (it is pretty ghastly how China currently mines REE).
I now think MCP will go bankrupt or at least be forced into major dilution. There does not seem to be any desire by the world to have a source of REE outside of China. MCP needs a zero interest loan to allow them to weather the current low REE prices while they work the kinks out of their waste water recycling mining method. I find it a little funny that we give Tesla carbon credits for making electric vehicles but there is no help for a mining company which wants to produce elements essential to making those electric vehicles and produce them in a environmentally friendly fashion.
So it is with some regret and anger that I think I will sell my little 1000 share lot of MCP next week at around $3 (hopefully) and then sit back and watch as China continues to dominate the REE market and force manufacturers to build technology inside China if they want access to these REE.
Sad, but it has been an eye opener in how the world works.
It was there again a second ago.
