Here is the link to MP's announcement:
https://investors.mpmaterials.com/i...lize-the-Rare-Earth-Supply-Chain/default.aspx
So the key takeaways from MP's announcement are:
- The Chinese Tariffs make it uneconomic to send their product to China to be processed into oxide.
- They say their California refinery is processing half their product to oxide.
- They are in discussions with USA Govt.
- They are accelerating their downstream production plans
So that leaves many questions:
- They have lots of cash on hand (which was to build the new downstream production facilities (ie production into oxide and then into magnets)). BUT if they are going to accelerate that normally comes at an additonal cost. Where is the additional money for that coming from? USA Govt grant/loan? Equity raise?
- The revenue from selling the concentrate to China would have in part funded the constrcution of the downstream production facilities. So does this leave a large funding gap?
- Does this funding shortfall require an equity raise?
What happens if the Chinese tariffs are removed, will China accept MP's concentrate?
So many unanswered questions.....anybody on here have some answers? Or best guesses?
https://investors.mpmaterials.com/i...lize-the-Rare-Earth-Supply-Chain/default.aspx
So the key takeaways from MP's announcement are:
- The Chinese Tariffs make it uneconomic to send their product to China to be processed into oxide.
- They say their California refinery is processing half their product to oxide.
- They are in discussions with USA Govt.
- They are accelerating their downstream production plans
So that leaves many questions:
- They have lots of cash on hand (which was to build the new downstream production facilities (ie production into oxide and then into magnets)). BUT if they are going to accelerate that normally comes at an additonal cost. Where is the additional money for that coming from? USA Govt grant/loan? Equity raise?
- The revenue from selling the concentrate to China would have in part funded the constrcution of the downstream production facilities. So does this leave a large funding gap?
- Does this funding shortfall require an equity raise?
What happens if the Chinese tariffs are removed, will China accept MP's concentrate?
So many unanswered questions.....anybody on here have some answers? Or best guesses?
