lree and hree confusion., page-14

"fully funded"?

suggest you read the Q2 report again.

"Changes since capital and ramp-up operational costs were last reported, as at 31 January 2011, are:
?
?
For Capital Expenditure ($ millions)  ProvisionforincreasedcostsfortheMountWeldConcentrationPlant 6.0  IncreasedcostsattheLynasAdvancedMaterialsPlant 30.5  Engineering&ProjectManagementCostincreases 9.7
 ReductioninContingencyandreducedOtherCapex  TotalincreasedCapitalCostsnetofreductionincontingency 28.7
For Ramp up and Operating Expenditure ($ millions)  Topre-loadLAMPtofacilitateearliersalesinvoicing

page 16

A provision has been made for an increase in the capital costs for the Concentration Plant at Mount Weld due to extension of time claims from contractors for delays associated with adverse weather conditions and late delivery of some equipment packages, and other smaller projected capital cost increases.
The total capital cost has increased for the Lynas Advanced Materials Plant in Malaysia due to increased costs on several equipment packages and contracts. As discussed in the Corporate section of the Quarterly Report there is now a conclusive path forward following the release of the IAEA independent report and the Malaysian Government?s clear announcement of implementing recommendations within the report. Lynas anticipates completion of the required submissions to the AELB in August 2011. The AELB will then take a period of time to complete an assessment of compliance. Subject to a normal compliance process the Company expects first production from the LAMP by the end of 2011.
Following a decision to pre-load the production batteries with Rare Earths elements, in order to accelerate production of finished product, materials have been purchased on the open market during the quarter at a cost of approximately $16 million.
The Company has received a letter of support and an indicative term sheet from a well known international financial institution to provide a working capital debt facility to cover the Company?s working capital requirements through to positive cash flow from sales. Other well known financial institutions have also expressed an interest in providing similar debt facilities. The total amount available to the Company under the debt facility will be in the order of $100 million, to ensure that the Company?s working capital requirements are covered through to positive cash flow from sales. This will be a standby debt facility, and the Company may not necessarily need to drawdown the full amount of the facility. The Company expects to finalise the terms of this debt facility during the quarter ending 30 September 2011. The new debt facility will replace the OCBC working capital facility which will not proceed."

FACT IS: There is nothing "fully funded" until the final costs can be estimated. This can be done once a full operating license was issued to Lynas.

Until then LYC from my perspective remains to be one of the most overvalued stocks on the planet, a 3.5 billion speculation on a politically corrupt decision AGAINST the interest of the people in Malaysia, never willing to accept the LAMP and ready to dump the plant once the political wind turns.

Despite the recent PR-campaign trying to cover up remaining problems the question remains: If Lynas has taken two years to build 40% of the LAMP, how are they suppose to proceed much faster now without a pre-opreational license and serious construction flaws?

This might not be a problem in Wonderland, in real life it is, and I'm afraid Lynas will come down to earth soon.

regards
Julia