we live in a world where there is always competition for resources (BASIC - food, water, housing and NONBASIC - wealth, luxury).
situation A if the REE price was astronomical and heaps of profit to be made, the above fact dictates the creation of more competition.
situation B if the REE price was so low, that all producers barely survive, that is the point at which other players will not want to enter the market.
situation A tends to become situation B.
so with low REE prices, we are merely shortcutting the normal migration from A to B.
Lynas may not make as much, but on the other hand it would have less competition and generates lower BUT STEADY profit - like many blue chip companies
So low REE prices does not mean the end of Lynas, it actually means the end of new players wanting to enter the market.
LYC Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
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