lynas cost of prpduction sub $12/kg

Lynas cost of production is below $12/Kg , IMO, because:

(a) The cost of producing copper is $6K/Ton
- The mining, crushing, grinding and concentrating REEs is similar to copper
- Mt Weld REE grade is 7.9%
- Open pit copper is normally 1.5% copper
- Therefore a copper mine has to mine-crush & grind over 5 times the
ore LYC does in order to get the same tonnage concentrate.
- Therefore it cost much less for Mt Weld mine to mine-crush-grind-
concentrate REEs that that of the average copper mine.

(b) The cost of producing Lithium - Carbonate is about $5000/ton

(c) Even if we double the cost of Li-carbonate production and add a bit
for element seperation we get less than $12/kg, IMO.

I know that ther has been alot of unsubstiatiated negative speculation about
LYC but at least this estimate provides a rationale.

Furthermore, while the company is under extreme pressure in achieving optimum pricing for its product contracts it is likely to publish estimated costs
on the high side rather than on the low side to give marketing leverage. LYC
would also like, IMO, to sent Chinese competitors a message of high costs rather than low costs.

Cheers
Moorookamick