Quest Rare Min. DEVASTATING News exceeding explana First of all - it doesn’t matter if English is my first language or not! I am sure everybody can understand me very well.
I wrote about facts that I believe they are devastating! This is exactly what we see in the share price of Quest.
I am also not presumptuous as some to believe that the destructive performance of this company crushing the share price from 8 CAD to below 1 CAD making quest a penny stock on very good reasons has to do something with shareholder value or my posting yesterday. So please send your personal attacts to the management of Quest and not to me. I write my opinion not payed for any single word not bashing or pushing the stock I write about the facts that are out for everyone!
I believe there will be NO port and NO a 165-kilometre access road. In the light of dramatically fallen rare earth prices of approximately 40% year-over-year there is no way for Quest to fund neither the port and the extremely long road nor the essential mine and all the peripheral equipment.
Worldwide we see a vast number of explorer stocks cutting the big size project and focus on smaller ones and cheaper ones to get started. This is what we see. This is what I believe as many others in the financial sector is the only strategy to manage the same dramatically changes in dealing with capex.
Quest pointed out that on bigger size capital cost and operating cost for the Strange Lake Project will be significantly greater but missed to name any figures.Quest also missed to show drilling results from the drilling program announced in summer 2012.
Indeed there is no way for the market leader Molycorp to earn money - making profits rarer than the rare earth the company mines.
It is highly questionable that prices will increase because Lynas the next big player outside china comes online with massive production of rare earth over the next view month and ready to improve production as well as Molycorp spending unbelievable much money again and again and again to expand production but seeing low demand. So the overall expectation is that prices will remain low and will see a further decline.
And I guess you know that China put several companies on hold to stabilize rare earth prices. They are able to flood the market at any time because they stockpile huge amounts of rare earth because of current prices.
I underline my expectation that these general conditions will not support any mining at Quests Strange Lake.
I see only Ucore and Tasman from the juniors to come online with their project and that for several very strong reasons. But this is just a marginal note.
I write about my own opinion and I do not hold any shares of the stocks I mentioned.