Sparkie1 - lets dissect this.Options for low production in...

Sparkie1 - lets dissect this.

Options for low production in current 1/4.

A) regulatory restrictions due to waste. Possible, but one would have hoped for some form of notification. Interesting the comment from the Malaysians about nothing to worry about as LYC are not producing yet. A long shot but could be in with a chance. If it came out later then LYC would be in serious strife with the ASX, IMO.

B) sales orders are not as firm as LYC would have us believe. We have had nearly 6 months from first product which is about as long as Eric says for the longest of the validation processes. He should have a pretty good idea by now, and planning full scale production for the current 1/4, assuming the product is good.

C) product quality is not as expected. This would be a worry. With Rodia and Chinese expertise and the most advanced plant in the world, if the quality is not good then there will be trouble at mill. If the Chinese and Moly can produce quality that is acceptable then one assumes LYC can do so as well?

D) the minor issue is much larger than you think. IMO if this is the case then an ANN should have been out out some weeks ago, as it is a huge materiel event.

It could be any of the above or indeed a combination of same.

My money is on B.

And BTW, the latest fluff put out today refers to sales and negotiations for the 11kt. Still no hard data on what % is SOLD and what is still be negotiated. And LYC are correct as they can always sell onto the spot market, so saying they have expectations of selling 11kt is no big deal in itself.