production = profits

At 11,000tpa production and full sales of this amt working on basket price of $35 kg and cost of production of $14 kg LYC makes $231m. Less admin costs for the coming quarter annualised ($63m x 4) gives profit of $168m P.A and EPS of $0.10 and P/E of 6, makes LYC a buy If only 50% of capacity is used and sold then and the basket price falls to $30 then profit falls to $25m EPS of $0.01 and P/E of 41, makes LYC a sell. What we need is an announcment of 50%, 75% or 100% of stage 1 capacity is locked into contracts. If this happens (75% +) we will see the price go up. Otherwise LYC is probably a 50/50 guess at the moment.