Yes Coppertop, simple supply/demand curve theory. You fail to acknowledge one key point. For the REO price to not fall from here, the demand for REO will have to increase as much as the supply for REO is increasing. Quantity demand vs quantity supply, you know, basic economics!
Will the demand for ROW REO rise 6 fold in the coming two years to 'mop up' the new-found supply, or will REO prices have to drop off to find that new equilibrium? That is the real question. My opinion is prices will fall, but who am I stop you from thinking the opposite will happen :)
It's ironic that you mention Molycorp's woes. They're the one who has been generating cashflow from their operations for the past year. What have Lynas been doing for the past year?
descending triangle target 29.5c, page-73
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Last
$7.76 |
Change
0.060(0.78%) |
Mkt cap ! $7.253B | |||
| Open | High | Low | Value | Volume |
| $7.72 | $7.90 | $7.70 | $22.34M | 2.868M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4481 | $7.76 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.78 | 14225 | 2 |
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| LYC (ASX) Chart |