Ann: Binding MOU with Sinosteel, page-31

Gosh sb and a couple of years ago I was blasted by the company for saying that the plant would cost $400m ....

But, cost is irrelevant. Value is the key. What is the plant worth, in terms of profitability that it can produce? CCU spent $50m on a silver plant in 2012/13, but last year the whole thing, plant, mine and all sold for $375k (plus provision of a rehab bond of $5m) because they couldn't make a profit. Many Lynas shareholders simply can't comprehend why LYC has a market cap of $188m when the plant cost $800m - but it can't make a profit (and has $400m of debt).

The cost of the plant has no bearing on the company's worth.