comsec have eps for ye 14 of 8 cents, page-19

spot on AI...

Lynas would be well ahead of us in this consideration...

if I am a producer of a range of commodities, I would step back and ask myself these questions in any tight financial enviroment ..

What is the demand for the each of the items in my entire range of my products ? Focussing on those ones who give the least net profit.
What will it be in 1, 3 and 10 years ?


Am I able to cut this minimal profit part of the range out ? (Save production costs on those items and take a (small) hit in gross profit but large savings overall)

What is the impact to my bottom line if I cut out the part of the range which is making the least amount of money ?
What is the impact if I cut that part of the range out for 1, 3 and 10 years ?


This has been done for hundreds of years by any manufacturer/processor... without it, you are chasing your tail producing product that has minimal market profit.

I suspect that despite it's very very low value, many of the REE producers (Lynas included) have little option but to produce some of these REE's, simply because they come with minimal effort out of the process, along with the REE's that are actually of much higher value. (not to mention the HEE)

So, if the there is no major cost savings by altering the range of REE's produced to be only the most profitable ones, Lynas may as well produce the current range... sure, it's bottom dollar for some REE's, but it comes as a byproduct of the top dollar ones and all adds to the bottom line.