RE: Management and cobalt prices -"I told you so" A late Friday afternoon type post on a Wednesday. Unusual, but so is the message...
It seems as though everything is falling into place - just as the "original plan" calls for.
But, 1st...let me mention that I don't believe that FCO will ever receive top dollar for their products. Weather it be 15.00/lb or whatever! I'm sure they hope to have several "contracts" for their products in place (cobalt/copper/silver/gold/REEs'/etc) all at a lower than market prices (however slight). Example: The "Manipulated Market price" falls to 10. . The "contract" price is 9.00. Now FCOs' "profit margin" is not good at all. But, these "contracts" will insure them steady sales and income - thus security about the future. But,but, but, I don't think we have to worry about this at all ... as other things will probable happen to change the course of the ICPs' future.
Also, "I told you so" years back, that the way the "game" is played by the real "players" is not what we see or hear on this bullboard. Period. For instance, the Chinese. A couple of examples of how they play the game. To be nice I will try to use soft words when in fact the actual doings are as lethal, to American businesses, as you or I taking poison. In certain markets (Elemental Phosphorus, copper, silver, gold, rare earths, etc.) my observation is that they have a long term international business policy/tendency to make sure the market place has an adequate supply of certain materials (flood the market). Result? Some of the world's competition disappears. What happens? Ooh, the price goes up at first...then slides off a bit. Sound familiar? What does this do for long term contracts? Raising Finances? Etc? Sound familiar?
Another of their lethal international techniques is when a producer of a "product" (see above) gets into a pickle due to a "financial" situation (various causes - like a low [manipulated] stock price) they come to the rescue. They just want a few things: here are three..., a few seats on the BOD, 51% of the stock, and a covenant that any further monies required (for any reason) by the business will be supplied by them at an acceptable interest rate (_% above the current market rate) and that they will be repaid in stock shares ... Sound familiar?
Now, 1) which one (or both) are we watching here?
2) Will Xstrata allow this to happen? Or, are they part of it? We know that they are interested - right? This is way to good of an opportunity for them not to be interested. Cheap too.
3) Will the American Government allow this to happen (with the present Adm. - no doubts - a yes) so that the "products" can be sold by contracts to outsiders, or shipped to "international warehouses" and then peddled to other part of the world rather than stay in the USA??
"Name your poison"...
westernkid
Note: vagueness intended!