Ann: Share Consolidation Approved, page-117

In my opinion the share consolidation has three major aspects in its favour. The first is a more manageable share register. As a company director I was once faced with a register where we had hundreds of uneconomic shareholders. This was a result of our company taking in shareholders from another failing company. The cost of printing and postage, necessary under the rules for public companies, was burdensome.

The second is credibility. Lynas is no longer a "penny" stock. It is an investment stock, headed for the ASX200 and serious recognition from investment funds. Share consolidation was a necessary step towards that recognition.

The third and I believe the most important, is that it is no longer as easy for traders to manipulate the SP. As a 20c stock a one pip trade was above 2%, making it a viable proposition and easy to manipulate, particularly at the open and closing auctions. Now a one pip trade is miniscule by comparison. It takes volatility like that on Friday to make good trades. That sort of volatility was possible because so many expected it result from the consolidation confusion. It should not be a regular thing.

This is a storm in a teacup and will soon be past history.