lifton, page-22

qhn234 - Another well reasoned post based on more assumptions about the remaining NdPr and SEG HREE compound remaining to be evaluated and the intimated state of the LAMP. Which I hope is also reasonably correct but can't be confirmed until LYC spill the beans and produce results!

The LAMP production issues and actual customer demand/approval issues are perhaps more critical than we would hope at this stage! It seems that the wrong grade of steel pipes where used in some or all of the plant and this will cause an ongoing issue for some time that will effect both the production volume and quality of the product. As a result - If our illustrious CEO,s comments are taken in one way the REO Eq Production for the current quarter will be 300tons or if interpreted in a more positive way perhaps 900tons?

Personally I am not happy with either result as LYC would be losing money at these rates of production. What concerns me most about the wear and tear and leaking pipes is that LYC was reportedly warned two years ago that they were using the wrong grade of steel and apparently did not act apon it? So it is more than likely that much of the piping will have to be replaced. Now we have Guidance that there will be at least two quarters of reduced production while they try to remedy this problem. Hopefully the company that built the lamp is liable for much of the expense of resolving the issues and this will make it a trivial financial matter for LYC except of course for the opportunity loss due to reduced production. At this point due to the lack of timely full disclosure endemic at LYC, I suspect it is very serious but will eventually be resolved.

In a worst case scenario it could directly cost LYC millions and there are the issues of environmental safety as well! Once these construction issues are completely resolved in every regard! Then LYC can get on with producing at least 11Ktons of RE compounds at a min average price $30per KG or more. The sooner the better from my point of view!