Denial Of Additional Rare Earth Investment &Nbsp; First Bull Stock Development Resumed Down 5.25%

　　 Development of Qi In April 1st, it issued a notice denying the additional investment in the rare earth business, which made the rabbit's annual bull market suffer the first sharp drop in the near future. Prior to the rumor will vigorously develop the rare earth business, development in the first quarter of this year, the stock price rose 147.43%.

Deny additional rare earth business Investment

In April 1st, the development announcement was denied after the verification. The company said that since the rare earth business has not yet produced economic benefits, it will not invest in rare earth businesses until the business is profitable. At present, the company does not implement a large proportion of shares or increase plans. Recently, some media and the Internet have heard rumors about development, saying that the company intends to invest more in the rare earth business in the near future and implement a large proportion of shares in 2010.

The development also disclosed that the mining right of the "Continental trough rare earth mine" which was funded by Mr. Zhi is the mining permit issued by the Department of land and resources of the provincial government. At present, the transfer of mining license is still in process and can only be transferred to the Hou Hou rare earth Mining Co., Ltd. after approval by the relevant departments.

In March 15th, the development announced that it was jointly invested with the Zhi Zhi Neng industrial limited liability company and the Zhi Zhi Neng rare earth Co., Ltd. to set up the thick earth rare earth Mining Co., Ltd., with a cash contribution of 200 million yuan and a 26.67% stake in the new company. After the announcement of the project, the development price of the company rose sharply, trading on 4 consecutive trading days, and rose nearly 100% in half a month. It was once known as the first bull stock in 2011.

Recently, stocks of A shares involving rare earth rumors have surged, and many companies that have changed their stock prices have issued clarification announcements to clear up relations with rare earths. In March 29th, twice issued a Clarification Announcement of the development announced that the suspension will be resumed after the announcement of the verification. The industry believes that the development of the suspension verification situation, may be for the unprecedented rare earth stir fried wind cooling.

The stock suffered a sharp fall after its resumption in April 1st, and its share price plunged 8% during the session, which closed at 26.89 yuan, or 5.25%.

Exposing five risks of rare earth investment

In the announcement, in view of this rare earth project investment, the development also exposes 5 big risks.

First of all, the newly established company is still in the initial stage, and the recovery rate of the rare earth ore has not yet reached the expected level of the evaluation report. In the end, it can not meet the expected level of the evaluation report. Secondly, the development of the rare earth project is only 26.67% of the total, and it can not be included in the scope of the consolidated report. In addition, the mining license of the rare earth project can only be transferred to the new company after approval by the relevant departments. If there is no approval, there will be a risk of unsuccessful project investment; the validity period of the mining license for the rare earth project will not be approved by the relevant departments until 2016, and the investment value of the project will be greatly devalued. Finally, for a variety of reasons, the related mines themselves have never been continuously normal production.

The development of the galaxy is the only beer producing enterprise. The main business is the production and processing of highland barley wine.