green go green lynas, page-47

Hi Serena

In regards to the book value...

The market consensus does not believe LYC is worth the value on its books, due predominantly I would say to its inability to generate profits from their current assets.

As an investor you can come to the conclusion that the stock is undervalued, comparing book value with market value, and take the opportunity to buy.

However, you are betting that a) the market changes direction and for this to happen imo b) the company must be able to demonstrate proof of profit from the assets.

The market value is always right imo unless proven otherwise by fact at some point, no fanciful valuations based on total cost, depreciation benefits and debt warrant further chat, without fact of profit.


This is even more so the case in regards to Lynas or a refinery type operation as they are more or less a one trick pony.