morning juice short squeeze anyone?, page-50

LYC is different Mitta in that those other companies are retailers or in production and have earnings etc.

LYC is different because it has been short sold before production and earnings which now that they are a reality will change the nature of the company in that it can now earn money in its own right.

Earnings will add value to the SP, there is no doubt about that and as they add value the SP must go up.

Ie. LYC earns $100m in the next 12 months then its value is that less operating costs which adds say 5c to the SP approx.

AT current prices 5c per share is 8.3% so should see a compounded increase in SP of about same value.

Given we will be 22,000t at full production at a basket price of say $35/kg then the math is that earnings will be $770m at full production or 40.5c per share per annum.

That is a 67.5% return at current prices which cxannot last given that as investors revalue the share at higher prices to a reasonable risk rate, say 20c per share return the sp would need to be double at least say $1.20.

You cannot disagree that a machine that earns money id worth more than one that sits idle or is being built.

That is how LYC is different and this should (and will) be taken into consideration.

My 10c worth for Friday, have a good weekend.

(get onboard buddy:)