Ann: Malaysian Operating Licence Update, page-55

Couple of coments Lynas started depreciating C&L in august 2019. It will be fully written down shortly so where id the lost?
See Q2 2020 report https://wcsecure.weblink.com.au/pdf/LYC/02195169.pdf

ACCELERATED DEPRECIATION ON CRACKING AND LEACHING ASSETS
In August 2019, the renewal of the Lynas Malaysia operating licence included a condition to relocate our
Cracking and Leaching operations from Malaysia to Western Australia within 4 years. Consequently, we have
adjusted the expected useful lives of the assets related to this activity within Lynas Malaysia in line with this
condition and they will be depreciated at an accelerated rate. The resulting additional depreciation charged
in the half-year ended 31 December 2019 is expected to be approximately MYR16.8m (A$5.9m) while the
additional depreciation charge for the year ending 30 June 2020 is expected to be approximately MYR42.1m
(A$14.7m).Next Texas was suppose to be done last fall and that would have taken product from KAL. We have been told KAL has surplus capacity even after supplying Lamp and Texas Right now Lamp is the only facility that can separate and purify REE. So how would have running both C&Ls have added and output of finished goods? Only if they plan to sell concentrate would it have made a difference. China would be only customer. AL suddenly wanting to change plans to running both still has me questioning what is going on that we do not know.

Sit tight you may have a chance to buy less than AU$6.00

Again i ask this question. How is Kal a bread winner? It is only C&L it has no separation or purification capabilities yet. i believe they will but it is not even on the schedule yet. So lamp is still the bottle neck. With out Texas and other expansion plans KAL will be running way below capacity. With higher costs in AU and running below capacity how can Kal not have much higher expenses than Lamp C&LThe shut down would have been in Q1 2024 how will this help? If you think it will beat last Q please explain how. Assume that they reach full next rates With NdPr prices dropping over 200 RMB about 25% Q to Q, I can not make it work. Can you show me why you think what your do?

I absolutly agree with you there will be lots of expansion in the future. Many of those plans are not even announced. With a small slip in KAL and a large slip in Texas do you think you should be investing in what may happen in a few years?