Cafa,To answer your questions,A) CertificationThe time for the...

Cafa,

To answer your questions,

A) Certification

The time for the buyer to test in their lab is not long. They can quickly agree or disagree with the spec sheet provided by Lynas. Rare earths are just that because they are a chemical structure that has been formulated by other chemical structures. the level of purity is important and the nature of the impurity although small in percentage can be different from one mine to the next. An example was given by ERIC that it would take time for a buyer that produces batteries to complete certification that the complete product performance had not altered by adding the same element of REO but from a different seller (source)This may be more in the contractual area but I grouped that under certification. 6-9 months was given in this case from memory.

B) Sales

It was defined by Eric that he did not expect the company would receive cash in the june qtr, but sales were expected.
A probing question from a female retail holder asked if there had been any contracts that had been cancelled. It did appear that there had been sales contract cancelled/amended due to delays but they were governed by time issues that had already past.
It appears all the big players are still at the table but oversupply issues could slow down initial contract agreements. Got the feeling that once the election is out of the way we will here that sales are happening, but there will be alot of hold um poker being played at the moment and LYNAS could lose alot of revenue by being to quick to agree. Sounds like we will have something for the June qtr and income in the next.

C Margin of Profit

A high teens ($18-$19) cost without phase 2 which did sound a little doubtful. Phase 2 will be governed by world REO supply. I believe it is just adding capacity to phase 1 and is not a different plant. Someone will pull me up on that if I am wrong.

D Current suppliers

When there is any new player in any business the sale price is likely to go down. This should hurt some other players more than Lynas, but the hype around the company is there because they are a big player in this market. It shouldn`t be forgotton that being the new player has some disadvantages but with a new plant they should have technology on their side.

Profit for any company is equal to REVENUE less the COST.

Until those numbers are both inked into a company report there are only estimates of what may be. Have to say i was disappointed it appears that the revenue may still be NIL in the June QTR. It would be great if that was not the case but last qtr was pretty good on the cost side for the staff size and building that the company has underway.

For me the number item to watch at present is the basket price, costs appear to have been estimated accurately by the company