ARU Chart Thread, page-2689

EddieB is a long term holder and quality poster on Lynas. Please read his comments on Malaysian past issues.

Then add in the China funded protests by locals - the fearmongering - still happens in Texas today re new plant.
The long established China RE pricing controls - continues unabated $$$$$$.
The continuous legal costs $$$$$.
The fake news and posters in all forms of social media.
The limited processing IP tech available at the time - plant failures - they had a period of having to shut production and change out corroded pipes every week - something many here brush aside when ARU state they are improving tech/engineering and reference those exact same pipelines etc etc $$$$$.
Last years LAMP water supply cut for prolonged period shutting down production - the whole district of Kuantan $$$$$.

COMBINED extraordinary additional capital intensive outgoings well in the vicinity of over AUD1.5 billion bucks - not far off Nolan's full funding stage 1. Then it still remains in corrupt unstable Malaysia - at the will of political change or existing gov change.

Then additionally the non Australia Gov support which gave Lynas no choice but go elsewhere with their expensive plant build $$$$$ imagine if that plant were built in Australia what Lynas SP would be today - the plant they had to build in Kal costing near a billion aud could have been a second full processing/separation plant. Then add the additional costs in logistics - yes offset by lower wages but their corporate social responsibility and considerable support to local communities has not come cheap - such is the high grade of Mt Weld they can remain lowest cost quartile and sit comfortable with 500aud million in cash and US DOD financed Texas new plant build - heavies and lights.

When comparisons are drawn to ARU - well they certainly have their challenges ahead however considerably less and lower capital than that of Lynas. Therefore, it is no surprise the support ARU are receiving to develop Nolan's and obviously continued support to expand - the Insto's know it and remaining equity off takers - it will end well - not in everyone's ideals - but then it's on with construction and commissioning and expansion - the Insto's have been and are all over it and the geographic stability is a major that many underscore.

Well I probably used up my 2 big words for today - have a great day all enjoying the blocks and games continuing on the back of a well planned strategy between our mob and their mob. It will pass.