Toly, we need to be realistic with this, there is no Q MtP has a...

Toly, we need to be realistic with this, there is no Q MtP has a built base of 38ktpa oxide processing capacity in two humungous 19ktpa single train SX lines that Moly thought they could largely automate, and failed miserably.

MP reportedly spent $200m refitting the processing plant, presumably largely on SX, the real Q is what did they do with the existing 19ktpa trains to make them functional? Nine months production at 331t, very likely reprocessed perhaps several times to make spec, plus 262t forecast current Q doesn't really inspire any confidence they've managed to solve the major issues Moly created in SX.

That said it remains a very substantial $1.7bn asset sitting on top of the third best RE resource globally, with primary stage beneficiation functioning well with well documented exports to China +40ktpa contained oxides. Great deal of confusion in the media, particularly comparing to Lynas separated oxides, basically stemming from the manner in which USGS reports the data.

Re Lynas, we've heard AL state a number of times that she would welcome ex China competition, now media reports are suggesting she actually initiated merger talks with MP, for mine that's a significant volte face (if correct) from someone who generally sticks firm with a well considered strategy.

Why?

Lots of thoughts, none make a lot of sense other than opportunity on a LT basis, others defensive - protecting Lynas expansion plans gaining control of a potentially disruptive competitor - not very AL like, Pennie probably said it best, we need to trust Lynas mgt to ultimately reveal their motivation/strategy, or perhaps this event, whatever it was, will just fade away as a non event.