Chapter 127 - Chapter 127 A Loss-Making Business?

The CIF price can delay the time to decide whether to sell cheaply or expensively!Then, isn't the FOB price the same?It is indeed true, but the FOB price has less room for operation. Apart from other things, you mined the ore from the mining area and then transported it to the dock. If you want to sell it at a higher FOB price, then you need to wait.That is, it is placed on the dock without loading or shipping immediately.Then there is a cost here. At least you rent a warehouse at the dock to store these ores. The daily warehouse rent is not a small amount of money, right? And what about the time delay of the transport ship?The ore transport ship has already arrived at the dock, but you don't load the ship and ship it. The ore transport ship has stopped there for a few more days, waiting for you. This is also a considerable cost.If the ore transport ship is your own, then the cost will be relatively lower. You only need to subsidize the crew's stay time and travel expenses. But even so, the ore transport ship still has a cost, which is the dock berthing fee.Don't doubt it, mooring is also charged, and mooring is charged by the hour.The longer you park, the longer you occupy the mooring space, and other ships cannot come over.It would be strange if you are not charged at this time.Even the longer you park, the more you will be charged in a tiered manner in the future.The mooring fee alone is very scary.In this way!If you tamper with the FOB price, not only will you not make much profit, but if you are not careful, you may even lose money.On the contrary, the CIF price is different. When the ore-carrying ship is drifting in the open sea, the extra costs generated will be much lower, at least there is no mooring fee, right?Therefore, general mining companies will only tamper with the CIF price, and rarely tamper with the FOB price."Okay!"Zhang Daochi understood the twists and turns, and his nephew's initiative to bring up the CIF price also showed that he actually knew the unspoken rules here.He said nothing more, and also showed his sincerity: "In terms of transportation, the company is our own, and in terms of freight, we will reduce the cost of general shipping companies by 10%~!"Give a discount on freight, and every sincerity must be returned."Okay!"Zhang Heng agreed with a smile.After all, he still thought of the family relationship.Even if this second grandfather was lacking in some aspects, such as being a qualified businessman and sometimes only caring about profits, he was still good to him.He was too lazy to care about such a small amount of money: "What about rare earths?""I might agree to you!"Zhang Daochi was much more serious.He didn't mention it in front of his two grandsons before.Even when Zhang Heng mentioned it, he changed the subject because he had to keep it secret.Now there are only two people left, he doesn't have so many concerns: "I'm not afraid to tell you that mining companies in Africa have discovered rare earths.There are quite a lot of them and there are many types."Africa is also very chaotic and not so strict, especially in terms of supervision. Even if it is rare earths that do not belong to the mining area, if they are done in a more covert way and secretly mined and sold, there is no problem."There are many people doing this over there, and the channels they use are naturally irregular, but Chicheng Mining Company cannot do this.Even if the operation over there is not compliant, it must be compliant in other aspects." "The initial plan is to transport the ginseng in ordinary ore, which brings two problems.One is the problem of quantity.The quantity brought in at one time is a bit small, and the other is that it is not comprehensive." "It's all mixed in, and no one can tell how much is mixed in, right?" "The second problem is the difficulty of processing and refining.Mixed in other ores, it is much more difficult to extract those rare earths.Let alone other things, the first process of separation brings great difficulty."Zhang Daochi knew that the process of processing and refining was indeed a big problem."Second Grandpa, do you think this will work? There are no problems with the division of buildings and other things. I can solve them here!"Zhang Heng frowned and thought about it, and finally came up with a solution: "It's mainly a matter of weight. How about calculating it based on the finished rare earth powder after processing and refining?""Well, let's put it this way, for example, gadolinium, one ton of gadolinium ore can be refined into 1-4 kilograms of gadolinium oxide, so I will calculate it based on 1 kilogram, and the price of gadolinium oxide is more than 360,000 per ton.The final price decision is still calculated based on the landed price.""There is another plan, which is to reverse the number of rare earth ores according to the refined oxides, and the settlement is also based on the number of rare earth ores.""Of course, this involves a trust issue. Will there be any weight concealment in my processing and refining? It is also a problem.Zhang Heng looked at Zhang Daochi with a smile and gave two plans, which were more or less joking.One ton can only extract 1-4 kilograms of oxides, which is between 1,000 grams and 4,000 grams. He calculated it based on the lowest 1,000 grams, which is a number that can only be extracted from extremely low-grade rare earth ores.What if they use extremely high-grade rare earth ores? Then one ton can be refined to reach 4,000 grams, which is equivalent to 4 tons of rare earth ores.If Zhang Daochi chose the second settlement plan, that is, to reverse the amount of rare earth ores based on the extracted rare earth oxides, Then you will make a fortune.The minimum of 1 kilogram is almost the lowest grade rare earth ore extraction quantity.If you choose the second option, use high-grade rare earth ore, and get one ton from there, you can sell it as three or four tons. Of course, rare earth ore, not rare earth oxide, will have a lower price, but how much lower can it be?As long as you are not a fool, you will choose the second option.". Let's settle with the second option!" Zhang Daochi is a businessman.No surprise!Not surprisingly, he chose this."It can be regarded as profit brought by risk." Zhang Daochi may want to make himself feel better, so he said this."No problem at all!"Zhang Heng nodded with a smile, knowing that it would be the settlement method of the second option.Since he proposed it, he was not afraid of others choosing it: "In terms of price, it will be based on the market price.In the rare earth sector, the fluctuation is actually not large.It will not rise by much, and it will not fall by much. " "Okay!"Zhang Daochi also knew all this, so he naturally had no objection.The next thing became much simpler.The business was already good, and only some details were missing.In fact, there were no details.It was all about the sale of ore.The general direction was actually the details.It was straightforward and would not involve too many things.So far! Hengyuan Mining Group and Chicheng Mining Company have officially reached a cooperation agreement.What they lacked was the signing of a sales contract.Once again, Zhang Daochi, the second grandfather, was sent back to the hotel in the town.Zhang Heng breathed a sigh of relief, with a faint smile on his face: "Haha...If it were someone else, it would be no different from a fool giving money to others.If it were me, it would be completely different. "