lynas ready to explode upwards very soon, page-50

Hi Jan

Thanks for the feedback.

The way is see it:
1. Valuing company on multiples should only be reserved for company with a trading history. With LYC, the more appropriate method is NPV. I know i am not using the NPV method properly because i have omitted the discount factor and termination costs etc. But its just a "back of envelope" type calculation. You will notice i use a hybrid system.

2. I like the idea of $13/kg profit better :) If i apply a discount of 8%, it gives a valuation of around $3 billion for $13/kg and $700 million for $3/kg (didnt think that the discount factor is going to make that much of a difference initially). At $3 billion, that is $1.50 per share which is the high around Feb 12. At $700 million, that is $0.35 per share which is the low around Aug 09.

If i average $1.5 and $0.35, it gives $0.925, which is also the high around Sep 12. For now, i am going to say short term target of $0.925