Ann: Quarterly Activities Report, page-49

I agree with you that Debt is not a problem. Currently taking out one time items. Like collections exceeding Revenue in Q4. And MT K payments for the finale warrants. Cash increase have been running about AUD 10 M a Q. As AL mentioned this Q they have another ALEB payment. this will not hurt earnings but it does take cash. So I think until revenue from some of the new improvements kick in about AUD 30~ 40 M cash / yr is a reasonable expectation. 40 X 5 is 200M not even half of 500 M. I have no doubt at all Lynas will have no problems with raising cash to support their plans. I bring this up only so people will not be worried if Lynas needs to raise cash in a few years. IF NdPr goes below 300 rmb and stays there, they will need cash sooner. If it goes over 350RMB then they just might get buy without raising any. To make any statement about cash with out some reference to REO prices is walking around in a fog and highly misleading.


You should work out what a 50 RMB does to revenue at both 6KT and 7.2 KT. It might help you understand that this is a controlling input. I would tell you but that will not last doing it yourself should.