lynas ree prices drop to under $50, page-38

Soho,

I am going to have a go at dissecting your thought process in 3 points. I

"more REE projects coming online very soon, and lots more in the future paints a weaker REE price picture... anyone else been reading about the massive mineral deposits being revealed in Greenland?"

Your general statement and assumption is slightly flawed, very simplistic and may i say ignorant the facts and economics when it comes to Rare Earth investing. I am amazed when people make such statement along those lines like it rolls of the tongue and rare earth processing is so easy to do, like a click of finger PRESTO and all the processing plants around is going to flood online.

Point 1

Does anybody know how long it took for Lynas to figure out how to develop processing technology to separate and refine rare earth earths? All the way back to the good old days of Ashton Mining it took Lynas 20 years to figure all this out. What does this mean? It means that the chemistry of separating REE is Very very tough. In Australia there are only a handful of people who has the working knowledge to make this happen, in fact and the 2 REE companies that have them guard them and don't mention their names very much (In Lynas case NOT at all) to stop them been poached by other REE companies. My eyes always roam every REE company in Australia just to keep abreast of what they up to and also what is their method to concentrate/process REE i can assure you most of them will never see production because Processing Technology hurdle.

The only companies i worry about is Great Western because they have links to the Chinese and Molycorp who are using significant debt to the tune 1 billion dollars to acquire that IP.

Guys i want to emphasize Please please stop making the assumptions that rare earth processing like is like Gold or Silver, Iron ore Processing. Million times more difficult. In the Job Market there are thousands engineers who can help you in Oil & Gas, Gold and Base Metals production and less then 10 Engineers who help you with REEs and they are not available. Think about that.

Point 2
"anyone else been reading about the massive mineral deposits being revealed in Greenland?" OR Ree Found deep in the Ocean excuse

Again simplistic thinking again, have you thought about the BIG picture? The REES found in GGG is in the middle of a Mountain covered in ICE. Don't you see an issue with that?

A) How in the world are is the company going to use the machinerys to go up to the mountains and amongst the trees covered in ice to access and dig up the REEs? Have you thought about easy access? Have you thought about Costs?

B) How in the world is the company going to build a concentration plant and THEN a refining plant on the sides of the mountain? Have you think about all the trees and land access to clear? How you even thought about the COSTS involved? Have you thought about the enormous cost to set up infrastructure & Utilities like electricity , water and building of roads to get access to the deposit and then to the plant?

C) Does Greenland Minerals have a cheap nearby source of chemicals in Greenland? Are they any industrial plants nearby? I am not sure of the answer but i am doubtful. I shudder to think that the company has to ship all their chemical by boat to green land.

I keep going on forever not to mention ON Top they haven't even figure out the Point 1 Hurdle. Point 1 Hurdle for Lynas took 20 years.

Point 3

The Weaker REE price is again simplistic thinking. The statement applies for Light REEs whereas Heavy REE price will stay sideways and even upwards.

As Lynas come online and starts getting cash flow and start sucking in cashflow for the light to medium REE. As Lynas enjoys the cashflow coming in, In the background Mike Vaisey who is in Perth is heading the development team to develop the duncan deposit, a deposit with significantly higher amount of heavy rare earths. He is working on the beatification process of Duncan and the Chinese will take over from there on the refining side.

Other projects which is happening is rare metal production and also not to mention Siemens Joint venture project for rare earth magnets. In other words Lynas is racing up the value chain faster before any Rare Earth company is doing,3 countries are making this happening. This is a combination of the Chinese for separating every single REE, Funding by the Japanese and Higher Value Chain product knowledge by the Germans.

I am sure a few posters in this forum can enlighten you how much REE magnets can fetch in this market $/kg....but first thing is first let get some cashflow which is what Lynas is on the brink of happening.