Sunergy, Inc. (fka SNEY)

[mikeymgd]

The list of companies that have the rights to mine and extract is rather large. In fact most are tremendously more funded and have vast larger proven reserves.

People seem to miss the point I tried to get across. Yes like Oil REE's will always be in play. The difference is the what price makes it cost prohibitive. Small Oil companies will need to shut down the pumps if Oil goes below 30 a barrel. Not likely but has happened in the past and bankrupted small oil companies. REE pricing has plummeted in the past do to the Chinese flooding the market and it forced all US producers to shut down mining since it was cost prohibitive. The question is will China open the flood gets once Molycorp and Lynas cut into their market. Molycorp is set to potential strip China of 30-50% of their market share in light REE processing. Lynas is still a bit of a question mark. They sit on the second largest cache of land based REE's outside of China and plan a full scale operation this year. Exactly what impact this will have should be known in the next few months. Odds are Lynas will look to supply Japan as well as Molycorp. Japan being the largest user of REE's and at odds with China, I feel removing them from China's supply chain will mean a glut in Chinese REE's.

Ultimately Molycorp is processing REE's already and Lynas is set to go on line within the next quarter. Add to this another wild card in the US, Rare Elements Resources (The Bear Lodge Project has high-grade light REE (LREE) and significant quantities of heavy REEs (HREEs), favorable metallurgy, outstanding infrastructure, and it is located in one of the world's best mining jurisdictions, recently globally ranked fourth by the Fraser Institute.) They are set to go online 2014. Will Molycorp run out of their large stock pile of raw material before RER comes on line? Bottom line is lots of companies global are all set to flood the market in the next few quarters or year, and supply and demand rules global trade. Greenland, Brazil, US, Malasia, Russia, Australia, Iceland, Canada, India and many other countries have mines or processing projects in the works.

It appears we disagree with the impact saturation in the market may do and at what rate it will effect SNEY's margins and potential rate of cost prohibitive mining of REE's. Don't forget the US used to rule in the REE market(produced 65% of all REE's globally) but shut down all plants since it became cost prohibitive once China undercut the market. History does tend to repeat itself.

Its fine we agree to disagree with the impact on SNEY once REE production begins to hit the market. No matter what direction people believe, the next few quarters should be somewhat telling with the future of REE minings and dredging I feel.
All in all a good discussion. Its better than talking every day about the filings.

Here is an article to show things are already shifting in the REE market. This is just the beginning of a rather massive global shift I believe.

http://www.raremetalblog.com/2012/06/jpan-ree-update-imports-keep-falling-recycling-keeps-stalling.html