Systematic28, all very valid points particularly as the RE industry is so tiny and also dominated by such a strong monopoly. Add to that the fact that China's "rare" earth fairy tale and quotas have sucked in 80% of 4 of the 5 main RE demand sectors behind their 30% tariff/tax barriers.
Normally you wouldn't touch a new entrant in such a market with anything but the most speculative money and only then if the new entrant had a strong point of difference.
The "new" money required to push the SP higher will be asking all the same legitimate questions and there will not be much in the way of hard data/answers re profitability for 12 months.
The majority of RE wannabes will fail but personally I think Lynas have matched the richest RE deposit in the world with a business plan structured to LT realities not investment fads or bubble prices. Lynas will be profitable (and tax exempt) at the LAMP but also has a host of value add & development projects to bring to market in the next few years.
LYC Price at posting:
63.0¢ Sentiment: LT Buy Disclosure: Held
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