Good to see the comments on this. LYC has been the target of a...

Good to see the comments on this. LYC has been the target of a lot of day-traders, and only gets 40% LVR in margin loans, so it would be a quick way to satisfy margin calls. When you get hit with a margin call, you lose least by liquidating the holdings with the lowest LVR.

Director spending a mill cash (note - this was NOT a bonus taken in shares) is a very positive sign.

The P/E ratio analysis is slightly flawed. There's closer to 750M shares on issue, and you have to allow for costs as well. Not all revenue is "earnings". If they sell the full amount of 10,500 tonnes, at $6 margin per kg, that's $63M per year margin, or close to 10c per share. So this translates to a share price around $1.00 assuming a multiple of 10.

Once the capacity is expanded to 21000 tonnes pa, allowing for some appreciation in the price of REE - which I think will continue to increase despite the financial troubles, on a similar analysis, the "intrinsic value" calculation I did comes out around $3 per share.

So - as everyone on this thread already knows - hang tight, this one is a screaming bargain at the moment. I'm very tempted to top up again also, although I've rather heavily overweight LYC already.