fantastic conference call by eric, page-20

abnamedsue - many thanks for your thoughts. If you have any thoughts on the following as a result of the call, I'd appreciate them;

A)Certification of these rare elements by the buyers takes time, longer than some HC posters understand.

How long can this take? My assumption (yes assumption) is that any serious buyer would have their own lab already set up to test these and the purity, It would be standard Q&A, as exciting supply would be random checked, so the analysis kit and procedures should already be in place. I would have thought a couple of weeks max.

B)Sales will start this qtr but cash from this will not arrive until next (SEPT) qtr.

Was this contractual sales, or 'we are confident that sales...' I raise this as it appears to be diametrically opposed to the statement later on - 'There were no contracts approving REO that Lynas had produced. First element was produced 21st of Feb the 2nd element on 28th of Feb.'

C) 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

Was there any indication of COP without phase 2? It does sound as if Phase 2 may be some way off, considering the mention of oversupply.

Taking the above into account it does sound as if he was hedging his bets on a time frame for Phase 2 production / sales.

D) Lynas have to replace current suppliers. The buyers are few and prices could still go down because of this.

Replacing current suppliers was a given and LYC (and most SH) would have known about this many months ago. It can be assumed that due to the shortages a couple of years ago that many customers would have stock piles and or long term supply contracts. This statement sounds like preparation for delays - IMO

It looks as if we will have to wait until Oct for the first report with any sales and profit numbers - bummer.

More baked beans, Lambda. But it looks as if you have more time to fill up at super cheap prices :-)