Very interesting, wwwater. A fair insight. Global demand from end users is definitely a factor that has been overlooked by this board. World demand has declined mysteriously from its 2008 high to a low in 2011 and not much of a recovery in 2012. It has been jaw dropping to me. But the continuing global recovery is bound to reinvigorate global demand for rare earth oxides.
Interestingly to us, the oxide price recovery may not be that crucial to GWG. I wonder about the benefit to LCM of the price decline of oxides. I mean, if the price of oxides drops while the price of flaked alloys is more than ingots and they put in these state of the art flake furnaces, LCM could well be sitting in a good position. The strength of GWG is ultimately in making the metals by having the uniquely qualified people and the technology to do it well. Once the furnaces are fired up, GWG is sitting in a position where it may benefit from lower oxide prices. And if the oxide prices rise, it benefits from in-house feedstock from Steenkampskraal and Vredendal going to LCM. And sooner or later, GWTI will step up to the plate.
Gary may be gone, but his vision lives on.