LYC share price, page-5

I would be real interested what you think these funds will be worth on a yearly EPS basis. First Blue line is a joint partnership. It is not clear how much of a grant will show up on Lynas bottom line.

Second it is a grant to cover capital cost. In US Depreciation for manufacturing equipment is usually 15 to 30 years. Lets use 20 years. The number that I hear most frequently is 50 M to set up the line in Texas though I am not sure what the real number is. Now lets assume that all of this goes to Lynas, Unlikely but lets be generous. So this would eliminate 2.5 M of depreciation a year for the next 20 years. There are 695M shares outstanding 2.5 / 695 = .0036 So it will be less than a half cent add to yearly EPS Even with a PE of 30 that is only a 15 cent add to SP, sometime a few years from now.

Now USD 50 M is great do not get me wrong. With a joint venture and capitalization have you ever figured out what the real impact on stock will be. It will have an immediate impact on cash and book value as funds are released you never get it all at once it is released in stages as goals are accomplished. if it all goes to Lynas which I doubt. Every bit helps.