I don’t get paid by the companies listed above so I will turn negative on them to help the ones that pay me.

Mr. Fulp this should be your philosophy:

What’s in for me and will they except my fees to be mentioned by me.

and just wondering u have any idea which australian mining company is operating on this mineral?
Cheers,
Best regards,
Bruce

In response to your point about tin tailings, I assume you’re referring to the alluvial tin deposits in places like Indonesia, Malaysia and Thailand, that have high levels of monazite.

I visited some of these operations earlier this year, primarily for tin research, but I did ask them about the stockpiles of rare earths in tailings and what the prospects for these where. They said they’d already recieved a fair few enquiries about this over the years, but because the tailings are quite radioactive (due to the thorium in the monazite) the stockpiles are monitered by the Indonesian nuclear authorities, which aren’t really keen on them being mined for a variety of environmental and security reasons. This is obviously quite a severe block to investment.

For new mine capacity to be built, the downstream industry will have to help fund it, reducing effective capital costs at the mine stage, spreading the capital risk along the supply chain and making the mine investments more attractive. The issue is slightly different in rare earths as there is no existing mine capacity (outside China) to buy try and reduce the operating costs of, or to try and extract a greater share of the metal price. Also the mine stage receives less of the share of the final metal price, than say copper or steel (iron ore). As such the only way of entering the rare earth’s mining industry is building new mine capacity – in a way the rare earths mining industry has reached this final stage, where there is no easy option left but to build risky new mine capacity, before other metal mining industries.

Once mining investors realise this lack of options in rare earths mining they will invest elsewhere in the mining industry for a more certain return, either funding takeovers of existing mining capacity in another metal, with the aim of reducing operating costs or improving marketing strategies to extract a greater share of the metals price; or building new mine capacity in other metals where a greater share of the metal price is already received than in rare earth metals.

As such if the downstream rare earths consuming industry wants to expand it needs to help fund the new rare earths mining capacity, reducing the effective capital cost at the rare earth mine stage and making the investment more attractive. Quite how the capital risk is spread along the supply chain is still open for debate (i.e. Jack’s China and Japan models), but may end up blazing a trail for the rest of the metals mining industry.

Barry Zern: I hear what you’re saying but I don’t think you’ll ever find the “perfect” project, be it in the rare earths space or elsewhere.

Graham Dillon: Lynas is building an “Advanced Materials Plant” in Malaysia to process their concentrates, and according to company presentations has a number of customers ready to buy the rare earth-based products from that facility in the future, once they’re underway.

Gordon Clarke: At the end of the day, if in the future, domestic Chinese producers cannot meet internal demand, and if companies like Molycorp are willing to sell their products to Chinese customers, if they have the capacity to do so after meeting the needs of their other customers – I can see that happening, sure.

Alex: Your comment implies a bias that simply does not exist. As I said previously here, there are dozens upon dozens of other companies out there that we did not mention. FYI, when I discuss projects in this type of context, I generally [though not always] stick to those with mineral resources or reserves as defined by NI 43-101 or JORC, and / or that have historical data based on previous mining campaigns.

Basically if it’s simply for no reason, “kiss”.

But i was just replyin with what the company has said at this point about 330m. And i see they filed to issue another 100M.

So…???

Chris

Chris – thanks for the information, however reverse splits are usually the kiss of death, not saying that this will be the case for GWG, however the landscape is littered with mining companies that have travelled down this road only to prolong their demise…again not saying that this will be the case with GWG, just offering practical experience and pass knowledge….good luck with GWG if you own it.

Brad