I agree, and my assumption is that this would be reflected in (albeit temporarily) higher P/E values than might be achieved when comparable producers come on line.
I used 12 which I think is conservative when we consider your point. If the P/E ratio was 15, simply multiply the above values by 1.25 (15/12). At 18, multiply by 1.5, and so on.
I guess my point of this thread (as niqo summised) is that once production is achieved, a BP as low as $50/kg for Pahhase 1 only, still represents a good return. IMO the BP will be considerably higher than this and so we will be looking at a company whose share value should be around the $3 mark in the very short term, and $4-$6 upon achieving phase 2.
I believe the vast majority of people involved in the required decision making processes will ensure this project proceeds and proves itself as a great forward step for both Malaysia (commercially incl. from a Foreign Investment viewpoint) and for LYC as a new world leader in this highly sought after technological field. I have read that Malaysia are ranked 10th in the world in terms of attraction to foreign investment. I don't believe for one second they will do anything to jeapordise that.
The ore is mined, the plant is built (or near as dammit). They will 'turn the key' shortly and the true value (and opportunity) will be quickly seized upon.
Don't panic, we're on a winner here
All IMO of course.
Cheers,
Freighter
LYC Price at posting:
$1.14 Sentiment: LT Buy Disclosure: Held
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