@Mongy
China will lift prices but only when it achieves a near monopoly supply situation. It's true that major companies in Japan and the US do want diversified supply for this strategic resource so there is a demand for non Chinese supply. But will that be from Lynas? Unlikely because there are US rare earth miners moving to supply that market and of course they are preferred. Until rare earth prices
actually rise assume they will keep falling. On no account should any investor factor a theoretical price rise into the value of Lynas
Gee Mong, I'm have trouble agreeing with your POV that Lynas would be an "unlikely' benefactor
from the fact that there "is a demand for non-Chinese supply."
Consider if you will ..the
broader commercial implications of just two of the more salient features currently on stage..
1. "Prime Minister Shinzo Abe's Cabinet has given the green light to an unprecedented nearly 5 trillion yen ($42 billion) defense budget, which comes into force in April. The extra military expenditure mirrors an expanded overall budget, which has reached a record 96.3 trillion yen ($814 billion). The budget still awaits parliament’s approval, where the government coalition headed by Abe has a majority in both houses."
http://rt.com/news/222407-japan-unprecedented-military-budget/
i.e. in reality, Japan and China do NOT play well together - especially in the South China Sea with
all it's predictable mineral/energy resources!! I have no doubt this fact underpins the viability
of Lynas's Japanese sales book ..unless of course (unlike Shinzo) one believes in "Pax
Pacificana" along with Santa Clause and the Tooth Fairy....altho' such ostensible cosying up
between Obama and Xi is certainly useful for buying some time for an ailing Roman Empire
with an awful lot on its "other directed" global agenda job list. Shinzo, however, knows it's
time to HTFU or his country will be robbed of backyard assets by an expanding world power.
2. Recent picture of US Rare Earth CREO industry hurriedly ramping up with a timely response
to the ever growing China vs ROW security of CREO supply issue..
View attachment 39713
3. Our chances of benefiting are quite LIKELY.... IMO
Place ya bets Ladies n Gennelmen
All IMHO
DYOR
(20min delay)