australian $ to hit 66c, page-5

Hi Senaris,
Our Aussie costs (mining, concentration and admin) are in AUD
Our LAMP costs are in Malaysian Ringgit
Our sales are likely to be in $USD.
Our Tax over the next 10 years is likely to be Zero.

IMO, LYC profit will not be repatriated for at least 12 years while the
Malaysian tax free deal is in force.

Given the logic of currency value vs the economics of that currency's country,
there is a stronger liklihood that the USD will go down in value more relative
to the basket price than that of the $AUD because over the foreseeable future,
China is likely to do better economically than the USA and our immediate
economic welfare is tied to China and not to the USA..

But so long as the Yuan is tied to the USD and so long as China controls the price of REEs, the price of the LYC basket will likely be determined by China and as such, related to the value of the USD.

So in summary, IMO, The AUD is likeley to vary between 85c US and par over the foreseeable future and a windfall of currency downgrade for LYC is highly unlikely. The key to our profit will be the basket value and LYC ability to deliver
at a reasonable cost.

The USD has had its half century in the sun and we are likely to see a new
reserve currency benchmark evolve over the next 5 years. China's recent bilateral
currency deals are a start.

Cheers
Moorookamick