GREY:WFEMF - Post by User
Comment by
mercurysmithon Oct 11, 2012 12:02pm
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Post# 20473294
RE: RE: IMC $35 Million ...
RE: RE: IMC $35 Million ... I meant to add that some (such as professorc) think it will be based on some set number rather than on a sliding scale percent of spot price. Hence their comments that it will be good for IMC when the spot price is high and better for Woulfe when the spot price is low. Problem is we just haven't seen the agreement terms. I suspect the way IMC is hedging against high spot prices is the fact that IMC will own a significant part of the production company. That is their protection against high prices. If spot prices are lower, IMC is also ok with that because then their cost for producing tungsten tools also drops. It seems like a win-win for IMC, unless the economy drops to the point where nobody wants to buy their tools.