I have been following the Blue line deal carefully. No where I...

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ContraryJ

7,246 Posts.

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02/02/20

03:37

Post #: 42697696
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Originally posted by ausheds: ↑

More binary nonsense, if you don't think Lynas will be by far the major partner in the Blueline JV you are simply not paying attention, any funding from DOD will coming as a matching grant up to $40M for both LRE & HRE, unlikely the relatively small Blueline business could find much more than 10% of the matching funds required. Blueline offers Lynas a great deal as a brownfield site but they will only carry them so far Major win for Lynas is threefold, firstly value adding Tb/Dy from Duncan, completing magnet supply chain to its existing Japanese customers, plus the opportunity to stimulate a new geographical mkt, albeit one that has declined dramatically even past five years.

Then beyond US domestic a successful DOD tender opens potentially a far greater opportunity for Lynas to qualify for significant funding from Australia's Defense Export Facility to facilitate primary SX at Kal, which would complete a totally ex Asia magnet supply chain.

Potential financial benefits to Lynas flowing from a successful DOD tender are both significant & multifaceted, way beyond your shallow thoughts.

Another aspect would be Lynas ability to match 10,000tpa NdPr with at least an effective 3% Tb/Dy to its magnet making customers, likely way above the proportion of HRE ultimately required, and again putting more light years between Lynas and any ROW competitors, the implications there should be dead obvious. Any further ROW CapEx/development Dy/HRE separation will only service the Chinese mkt.

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I have been following the Blue line deal carefully. No where I have found a single reference to what the business relation will be. Can you point out anything I Missed? I cannot say anything you say is wrong, but where did it come from. If blue line gets the DOD funds regardless if the Split is 90-10, 50-50, or 10-90 it will be good for Lynas. Development will be CAP EX and since it will be in US, US laws apply so Depreciation will be over 20~ 30 years, Unless they can prove a lower life expectancy. Hopefully as Lynas grows the impact of this will be small on operational earnings. Still good just not that big. Nice quick hit for cash though. Just like to see a little back up for your many claims.

LYC Price at posting: $2.19 Sentiment: None Disclosure: Not Held
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