molycorp conference call, page-26

"Molycorp's problem is credibility..........The market today does not need both of them, and the market will decide which one survives........... is that Lynas will win the race due to its much lower operating costs and the experience of its operating team.Lynas' also seesm to have done an excellent marketing job IN ITS OPERATING REGION, Southest Asia."

If LYC base on the mainly reason due to the advantage of lower operating cost to eliminated Moly, then LYC will must face to Moly today's problem in the future due to the new competitors appear ---those who have more advantages than LYC, by the State-owned companies, in the developing countries of the more lower operating cost.

If the rare earth market is so small that let Moly and LYC can"t both survive, then there will be:

Once Moly had been eliminated by China due to the higher operating cost;

now Moly would may be again eliminated by LYC also due to the higher operating cost;

the near future LYC also would be eliminated by the new competitors with more lower operating cost due to the higher operating cost of LYC.

like as the natural selection?

...

my personal thought:

the rare earth market outside of China should be able to accommodate about 80,000 T/Y of production capacity.

If China don't use the weapon of Price war(such as cruel war to eliminated Moly),LYC, Moly, and a few of new competitors should be able to survive, But would be reduced/limited the rate of MARGIN, so that the share price will may be difficult to gain a good performance.