6 times� really?..., page-15

Hi Chi, from what I can remember, the annualized cash burn of GWM was around $15m. This appears to be primarily an operating loss from LCM and GWTI. While it is GWM's stated goal to make LCM profitable I think this will be a function of finished REO product vs the price of the feedstock. I find it hard to believe that GWM management is hedging the higher REE prices but I do not know that for sure.

Hi Alke, while it is true that GWM is attempting to be a downstream "performance metals" provider, the fact remains that most of the working capital is now going to the refurbishment of Steenkamp. Also, GWM has announced a while back, that planning and refurbishment of the Steenkamp is a priority. Additionally, they announced that they had hired a well known mining planning company (I don't have my notes) to plan and engineer a concentration and separation facility to be located at Steenkamp.

GWM IS a DIRECT competitor to Lynas, they are in the same space with the same product. While GWM chose to pursue and add the "vertical integration" model, it has thus far it has proven to be a liability. The "mines to magnets" model sounds sexy but is difficult to implement. Compare this to Lynas's horizontal integration business plan and it is pretty clear (at least to me) that horizontal integration provides many benefits to a "first mover" status in that shared resources and economies of scale can be realized.

http://en.wikipedia.org/wiki/Horizontal_integration

I was trying to be merciful by not discussing LCM in my first post but as I said, profitability will be determined by the differential of the price of the orebody and the selling price of the finished REO products. This is just like any other manufacturing facility where the operating margin is very dependent on the COGS (cost of goods sold). I think GWM has its eggs in too many baskets and it will be difficult for them to focus on any particular area. They are about to run out of any capital, working or operating and without a short term debt facility, may be subject to a spoon fed take off or joint venture agreement. This is a horrible time to be going to the well with any kind of secondary.

However, my intentions here are to point out that compared to other "leaders" in the industry, Lynas far exceeds the vast majority in capitalization, planning, engineering and so on. It is hard to fathom just how undervalued Lynas really is. I sometimes thing I am missing something, but the knowledgable that post on this and other boards share the same opinion. JMHO.

Thanks all for your input :)