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Chinese bid for more Rare Earths blocked

|Includes:Lynas Corp. Ltd. (LYSCF)

Australia's Foreign Investment Review Board (FIRB) have imposed conditions that have led to China Nonferrous Metal Mining to abandon its bid for a controlling stake and majority directors in Lynas Corp (OTCPK:LYSCF).

The abandonment of the bid will presumably kill some of the trading activity that has seen Lynas shares triple since the bid became known.

A week ago I had a quick look through the most recent Lynas presentation and jotted down a few thoughts here.

While a back of the envelope examination of the numbers made the profitability look marginal, with China supposedly intending to restrict export of rare earths -- of which they currently produce over 90% of world supply--longer term prices should rise making the numbers look more attractive.

Stocks: LYSCF