No Moats in Commodity Trades? Think again!
@Ah_Meng：
Digging out dirt may sound like what it is. Dirt in your backyard is just dirt, or so you thought. Mining is merely a dirty art that nobody would associate with a moat. Ironically, why not? Isn’t physical moat generated by digging up dirt!? Obviously, we are referring to a barrier of entry, an insurmountable advantage here in this context, rather than the physical ditch. If we are talking about simply digging out dirt (minerals) to sell, that’s obviously is a no-brainer. Or is it? The story of MP Materials, at least to me, is an interesting one. To know MP Materials formed a mere 8 years ago, we need to know Molycorp. Molycorp was an established rare earth miner with processing facilities. However, like many expect of a miner, it is at the mercy of commodity prices. China is so dominating