Multiple factors influence the valuation of any asset.
What your saying is partially true but you put it across like the be all and end all. This is perhaps, in my view niave.
I have often enough said Price is what you pay, value is what you get.
You are forgetting basic economics. Equilibrium arrives at some point. Supply and demand meets and things stablilise until a new equilibrium is reached.
If the price of something is low and keeps going lower and this something is the thing you happen to produce, economics dictates that you curtail supply and the price rises.
Prices of raw materials over the last couple of hundred years have histroically reduced in price. The evidence is there. You are not Robinson Crusoe in this regard. But there are many many ways to add and maintain value. One way is to be an efficient low cost producer such that whatever the price you make a margin.
Second of all, in the case of Lynas LREE are not the only thing in the pipeline. The real money (the good oil) is in HREE. Duncan deposit has HREE in spades.
Many factors eztrang.
Best of luck.
LYC Price at posting:
85.5¢ Sentiment: None Disclosure: Held
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