GREY:WFEMF - Post by User
Comment by
GaiusGermanicuson Aug 21, 2014 5:16pm
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Post# 22866938
RE:RE:RE:Who would lend
RE:RE:RE:Who would lendUnfortunately RD101 doesn't apply to materials not otherwise available. Sure, China had a ruling against it in the world trade court, but that doesn't mean they're actually going to increaes supplies SIGNIFICANTLY, which is what the current Tungsten prices are based on. All they have to do is declare it a critical national strategic resource and it'd take an act of war to get them to export any.
This is more about getting a strategic supply with an extended lifespan so as to guarantee a continuation of industry in the developed nations of Asia in particular, and to some extent the United States and Europe.
Sure, IMC is going to end up with a big end . . . that was known going in from the beginning, but we're talking a total project value in the hundreds of millions split up about 4 different ways with Woulfe only holding onto SOME of the project value BUT . . . what it WILL do is guarantee Woulfe an income through which they can exploit other opprotunities while paying dividends to shareholders.
Tunsten prices are fluid. Woufle would be able to simply without their share of the refined product during the low periods and sell it during the high periods as long as they were selling just enough to meet their operating expenses. In fact I'd give up dividends during the low price periods just so Woulfe could stockpile the material for the next big spike in demand.