when will lynas rally?, page-12

I ask in good faith because I'm obviously missing the 'penny dropping' on the issue. LYC for simple maths we will say 1.7b@$2 for 3.4b MC.
If LYC paid premium and bought back 1b shares@$3 would the 700m left not drop the MC to $2.1b? For it to still be $3.4b would mean the $3 buy back was a ripp off because the SP would have to go up to $4.85 to equal the original cap. If the share price did go to $4.85 to up the market cap why can't it do that with 1.7b issued shares, not because the volume decreased. Is it a supply/demand issue, rarer share. If so, something rare can be worthless if it has no appeal.

P2W,
When starting production, if Lynas buys back shares that would not require a premium. They would just shrink the float and buy them from the open market. The company does not buy the shares to profit off the shares purchased. They buy them to raise the share price and reward shareholders. Don't think of the bought shares as a direct investment. They are in lieu of a dividend or acquisition. If timed right it would immediately add value to the company at minimal cost.
This buy back would increase the share price through supply and demand (though we all know LYC would take her sweet time rising). By itself it should maintain the market capitalization, but then there would likely be a bonus increase because it would signal to the market that no further dilution should not be expected. Then the production results in earnings, those earnings receive a higher multiple and we end up rich drinking boat drinks and Bundy. That's my plan.