Ann: Quarterly Activities Report, page-80

Up or down in the months ahead?

Lets consider some simple maths. Today NdPr is up again. Its up 10500 to a new 11 year high of 915 000. Increasing about 15% in a month. Increasing from 650 000 three months ago to over 900 000 today. So we have seen the price of important RE increase 45-50% in three months. The next point to consider is the flash to bang. In this case how long for those prices to flow through to revenue. Between the many contracts it is often taking 2-4 months for price increases to fully be factored in to sales revenue. I could get caught up in supply chain issues, total REO production levels etc. But keeping it simple. Present revenue is largely capturing NdPr (as an example) prices in the 600 000- to low 700000 range. The next quarter results will be likely see a 30% + increase in revenue on same volumes. Its reasonable to assume that if quarterly sales was $202million, on same volumes, we may see $250 million (+) next quarter and increasing if RE continues to rise.