aru presentation, page-2

Seenow that ARU presentation tabled today is mind blowing in the forecast increases for RE prices - 20-30% compound growth over the next 5 years will see RE MtWeld basket at US$30/44kg!
at 22000tons of forecast production then that equates to potentially A$800m of cashflow in 2013! The share price would be at $5!
You cant read a headline today where there arent hybrid cars being planned and where are the RE's going to come from. The Chinese now have overtaken Detroit in that the most cars sold in 2009 in the world. I dont think they are going to export any of their RE's - remember the bomb shell they dropped in their 5 year plan to stop exporting which caused the intense lobbying that torpedoed the Chinese takeover.
So we have a company that is valued at little more than the 800m to be spent on costs to get the processing plant up and shareholders keep questioning the at the minute share price.
So you tell me where you get a real estate opportunity in life to buy in at 20% above build cost and they will throw in the rarest best piece of realestate for nix??
This is the situation here right now and people are questioning the value!
Sure the capital raising diluted the stock but there is no debt and therefore no financial as well as resource risk and the stock still has $5 potential. The today value of the resource plus the 450m in the bank to complete the plant in Malaysia is worth more than the current share price assuming you can find another MT Weld and the time value of money to get to where the company is today.
When you evaluate the risk return potential of this stock with the following attributes
- proven resource so no exploration risk
- permits in place
- 100% equity no debt in the bank
- 12 months to production
- RE price growth of 20/30%pa for the next 5 years
- contracts in place with upside potential
- Environmentally green processing plant
- Only competitor is in a resource hungry country with questionable environmetal credentials
This is one of the best low risk massive return opportunities in the market today.
Good luck to all LYC holders and keep accumulating!