fantastic conference call by eric, page-14

To title this conference call as `FANTASTIC` is way more than misguided.
When the CEO is in a Q & A session sometimes you learn more in what they don`t say than what they do. For mine here is the good and the bad.

GOOD FIRST.

Some really good questions with detail from retail investors were asked, probably some posters here going on the preview thread.
Lynas are working hard at overcoming bad PR and trying to get the message across they are SAFE
The election is less important than the decisions already made by the courts (favourable)
The LAMP has produced all variety of the rare earths on schedule and some clients were onsite to tick off the initial production specs for shipping immediately to their company.
Certification of these rare elements by the buyers takes time, longer than some HC posters understand.
The CEO sounds as a very conservative sensible guy who has a detailed timetable that is and has been adhered to.
The lamp is within budget.
Phase 2 building production is nearly complete and commissioning of parts of Phase 2 processes has already started. Completed by end of June
Sales will start this qtr but cash from this will not arrive until next (SEPT) qtr.
Good relations with the japanese at a time when chinese relations with Japan are not good.
Relationships with buyers are good. They see LYNAS as a large professional company.

THE BAD

Would not admit that the company may see some cash in the June qtr.
Only TWO Instos were on line to ask questions. One was JP Morgans who short the stock and the other was Pattersons who have there own reputation.
it does appear that the election result has lynas trying to fly under the radar as far as shipments out of the plant go. Revenue may be delayed.
The margin of profit has narrowed dramatically in the last year. Some other plants have closed due to oversupply of REO. Lynas have the ability to add huge supply at a time of oversupply. Phase 2 ramp up will depend on this oversupply.
Costing of the LYNAS basket at approx $14-15 includes full production of phase 2

The short sellers have a little more time and they have no immediate reason to cover. The enterprise value is large and there are still risks. Lynas have to replace current suppliers. The buyers are few and prices could still go down because of this.
The damage surrounding potential non supply to a new contact buyer will likely set a timeframe for agreements after the election.

There were no contracts approving REO that Lynas had produced. First element was produced 21st of Feb the 2nd element on 28th of Feb.