RE: RE: Victor2009, Nash's Departure From LBEVictor; I didn't realize you were awaiting my response with such eagerness. I had thought I made myself clear earlier.
All the stuff I read was that Liberty had been shipping nickel concentrate to JJ as debt repayment.
See Notes to Consolidated Financial Statements 10 (a) in the last annual report:
On May 8, 2008, the Company announced the completion of a $15,000,000 USD credit facility with Jilin Jien Nickel Industry Company Ltd. (“JJNICL”). The credit facility allows for funds to be advanced in tranches as a prepayment for nickel concentrate to be shipped to JJNICL. The advances bear interest at 9.71% and are repayable within one year of the date of each advance. The Company has committed to ship 20 tonnes of concentrate per day to repay the advanced funds under an amended off-take agreement.
Granted that agreement was halted later. But the general agreements remain: See section under Credit Risk in Annual report:
The Company has nickel concentrate sales agreements with Xstrata dated March 1, 2008 and JJNICL dated April 29, 2008 to sell nickel in concentrate.
The Company has received an exemption from a requirement under the Mining Act to have its ore treated and refined in Canada by the Ministry of Northern Development and Mines. This exemption is valid until November 23, 2010.
At December 31, 2008, these two customers accounted for 81% (2007 - 22%) and 19% (2007 - 78%) of the Company’s revenues, respectively
The last line indicates a fifth of production was shipped to JJ before the shutdown of the mines.
If you have information on what the deals are since the mines reopened, please share.
As far as your grocery store analogy, the Chinese operate differently than western companies. That was my point. No they won't buy a grocery store to buy groceries which they can get for the same price at Safeway. But they will buy farms and land to guarantee a supply of food into the future. They're doing that in Australia now, and looking at other countries. And no, they don't care if it costs them more to grow the corn, or raise the cattle, than they would have to pay at Safeway. But they want the guaranteed supply.
It's the same with copper, nickel and other metals. The Chinese are buying mines in South America and Africa to guarantee themselves a supply, even if it costs more to produce than if they bought the stuff on the LME.
That's why they have been pumping money into Liberty without regard for profits.
Of course that doesn't do anything for the minority shareholders since the stock price is going to reflect the profit the company makes. But that's just tough luck.
Hope that answers your questions.