dt's creating a buying op, page-6

Of course it will rebound. But the trick is figuring out where to rebound from

I'm thinking $2.17 may be the level. Gap at $2.05 interesting but the problem here is these gaps were created by new information not just over zealous trading.. These types of gaps can occur and stand alone...

As I've said $10 is achievable.

Analsyts have 48 cps of earnings in FY13. This is based on forecast basket prices which are below current spot and are therefore all likely to be lifted over the next few months. So at $2.17 LYC is trading at 4.5x...

Given the strategic importance of these assets and the desire for the Japanese and Americans to secure supply outside of China I can see a PER of 15-20x occuring.

So at 48 cps earnings PER of 15x = $7.20. But as I have said I think the earnings will be upgraded significanly as basket prices remain high to reflect the strategic importance of the supply certainty.

And then we have $10.