I have been looking at my LYC shares today and thinking what SP...

I have been looking at my LYC shares today and thinking what SP will be in store for them and how long i should wait…..

By the end of this year we should have positive cash flow results….

I then think we need three solid reporting periods to fully ramp up and make use of the phase 2 production investment.

So I think by the end of Sept 2014 the LYC train will be chugging along well….From now until then we have time to get through the following key milestones;

General Election 2013
LAMP running at a decent capacity
Rare earth prices stabilised
Sales contract signed
Potential JV’s in the pipeline

None of these milestone are out of Lynas’ reach now with their new CEO in place

So I would describe ‘LAMP running at a decent capacity’ as producing 19000 tonnes of rare earth, at today’s basket price and with costs of $15 leaves $411 million in profit a year

With 2.17 Billion shares on offer and a P/E ratio of 10 gives a share price of $1.89 an increase of 320% on today’s SP

And that does not take into account a higher basket price, lower production costs and maybe a higher (P/E ratio), although the opposite could be true as well.

Looking at the SP and hotcopper every day is sending me stir crazy, so I think I will put the shares in the bottom draw and be patient as I do see a lot of potential in this stock. Just wish I had sold out at $2.50! (held since 2007)