6 times� really?...

I find it very hard to believe that Lynas is valued by the market at such a ridiculous share price when competing companies that aren't really competing are valued at the same ridiculous high share price...

OK, I hate to do it but I am bringing Great Western Minerals into the spotlight once again. GWM has about $1.5m in the bank and very little in the way of current assets. What they have is some mining real estate which for the most part contains implied or inferred resources and some questionably classified proven resources of which NI 43-101 mining analysis is still to be completed. Current assets can be contested, but the bottom line is that without a JV, takeoff agreement or a secondary offering the company is down to it's last month of working capital...

Given this, I look at the fully diluted outstanding common which is just short of 500m shares. Now, GWM is trading at ~ $.85/ share for a market cap of $425m.

Now look at Lynas. Outstanding fully diluted is 1.8b shares trading at $1.50 per share. This gives Lynas a market cap of a $2.7b. This make the Lynas market cap just 6 times that of GWM.

What do we get with Lynas? We have all heard the story, full capitalization to significant production (and positive cash flow) by the end of 2011 or early 2012. Assets that include a separate mine in Malawi Africa with a pilot concentration plant and other mining equipment for future use. Also there are some un-accessed deposits non-rare earth deposits at Mt.Weld...

Lynas, of course, is close to finishing LAMP and has already finished Mt. Weld's concentration facility. These investments are in excess of a half a billion dollars and they are PAID for. Lynas has developed SIGNIFICANT Intellectual Property and Experience in the development and operation of a rare earth processing facility. Lynas has the supply chain logistics in place and has signed agreements for the distribution of the final products.

Now, can somebody tell me that Lynas is only worth 6 times GWM. Lynas has over $200m in the bank compared to GWW's dwindling $1.5m. Lynas has tremendous current assets in the form of "plant, property and equipment" probably in excess of half a billion, compared to GWM's current assets of ~ $60m of mostly un-appraised mining real estate.

6 times... Really?

The story at Lynas at the worst remains unchanged and at best, realistically, keeps getting better. I don't have to go over all of the details here but IMO either GWM is vastly overvalued, or Lynas is vastly undervalued. Of course it could be some of both but looking at the forward P/E it would appear that Lynas, at this price, is a gift...

For my money, I have put it on the pass line for Lynas, when those production dice are finally thrown. I will take a company that has real assets being developed by proven veterans in geo-politically stable regions over a speculative miner that may not have enough to pay the light bill should necessary financing fail... 6 times... Really?

JMHO...