Deciphering Lynas, page-7

Questions like who Lynas is selling to and through whom they are selling are inscrutable. A word here; a phrase there; an old report. Nothing like: "Today Shin Etsu increased its Nd offtake agreement with Lynas to 3000 tpa." Oh well.

I am still buying SHECY in one of my retirement accounts - now a year into it; long term play, proven manufacturer traction motor magnets for Toyota, plus a forward-looking chemicals portfolio that make it = IMO = a real steal; 3-4% divvie too. I see 10-20% pa here with a BIG surprise upside from magnets. That said, they have announced NO plans to add DyTb-NdPr-FeB capacity; tempered by the fact that they doubled production in 2018. The segment does not seem that strong, to be honest, but without the assured BLJV-controlled price protection, DyTb is a margin-wrecker and yet they soldier on doing their own recycling and solvent exchange separation of swarf (waste magnet materials, sizeable amts from machining, etc. - currently, the most valuable magnets must be returned to elements to be remade into most valuable magnets). Also bought my first TTDKY today.

These companies are well aligned with Lynas and I expect important mutually-beneficial synergies to develop.