Someone asked the question. But who will supply all of the worlds rare earth needs? The Chinese will and they will do so at a price that is well below where other operators can be profitable.
Would you invest in a t-shirt company that makes t-shirts in Sydney at 25% higher prices than the Chinese? If you are buying Lynas shares that is effectively the trade you are making.
Name one other industry where a western competitor has been able to compete with the Chinese on cost? There are none and rare earths is not about to be the first.
LYC Price at posting:
20.0¢ Sentiment: LT Sell Disclosure: Not Held
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