??halfway through our sin bin time, page-9

Let me reiterate. At present Lynas has 15,000 tones of concentrate sitting at Mt. Weld. They have 750,000 tones of ore mined which translates into 270,000 tones of concentrate. Thus the only operating costs for the present are concentration at Mt. Weld when necessary to feed Gebeng and the Gebeng plant itself, plus overhead.

We know that Gebeng is running at a higher rate than in October and is ramping up to full Phase I nameplate production. Lynas has also reiterated that all of the production of Phase I is sold out.

Low operating costs + plenty of feedstock + full production is somewhere @ $300,000,000/year run rate. How they handle carry forward losses is another factor that will impact profitability. Any Aussies know about this?

So all in all, the outlook is predicated on a reasonable success, which I think is a reasonable assumption. Of course any screwups will be dealt with in a painful manner by the markets.