Any time you can sell waste rather than pay to dispose of it, it is a very good thing. If I look at price of various soil enhancers in New England USA like peat moss, Compost, Processed manure, It will add to the revenue stream and that is very good. But the amount when compared to what the REE generates will be tinny. They have been accumulating this for a few years so it will provide a nice one time hit to revenue. On an ongoing basses it will not be that significant. I think it is great they are doing this just do not expect there to be any noticeable change to EPS on an ongoing basis.
On Lynas home page, Mt Weld description.
“The Mt Weld Concentrator is a flotation plant designed to process 240,000 tonnes per annum of ore to produce up to 66,000 tonnes per annum of concentrate containing 26,500 tonnes of REO.”
So 40,000 ton of waste a year at max production. I doubt it all becomes condisoil but lets assume it does. After trucking maybe they net $10 / a ton That is $400,000 a year not a big impact on a $400,000,000 year revenue stream. Maybe $10.00 is low but I can buy 4 tons of processed screened and enhanced (with manure and lime for a PH of 7) compost delivered to my home for $28.00 / ton. Pick up 40 tons, single load it is down to $17.00 / ton. I doubt Lynas wants to be involved in direct sales of this product they will wholesale it off to a distributor. Even if $25.00 / ton, very unlikely, that is only $1M to revenue. If anybody has seen a price I will be glad to look at it.
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