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.
- Forums
- ASX - By Stock
- CDU
- Ann: Binding MOU with Sinosteel
Ann: Binding MOU with Sinosteel, page-31
-
- There are more pages in this discussion • 26 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CDU (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, Managing Director & CEO
Charles Armstrong
Managing Director & CEO
SPONSORED BY The Market Online