Ausheds, As someone who has had a lot of experience supporting...

Ausheds,

As someone who has had a lot of experience supporting the value of fixed assets to auditors, they look at the economic return on the assets if they believe cost less depn is to high, particularly on loss making equipment.

If you read the accounts carefully from last year, it says the cost and PERFORMANCE of ph 2 assets were used in evaluating the value of ph 1 assets. It is clear to someone that has had experience in this area that the Ph 1 assets were written down due to not being able to produce the same as ph 2. What it can really produce i do not know but less than Ph 2 and the company and auditors agree that replacement equipment that can produce the same as ph1 can be purchased for less than book value of Ph1 assets. Then in the half year accounts there was another $30 mill impairment charge.

Onto Mt Pass, are you serious about 50 years experience and they can not get it right. The site was shutdown in 2002 because of environmental issues and low prices. Chevron sold it to a group that built a new plant using new tech. And although the Moly CEO was ex Chevron, he did not come from the REE business. Effectively they started off from the same starting point as LYC.

My view is that Lynas will survive but shareholder value has been destroyed forever due to the massive losses incurred which need more and more capital at ever decressing prices and the massive dilution is here to stay.

The only thing that will give value back is if there is a massive REE price spike and that will be a poisoned chalice. Remember your post on Ford where you claimed they made 30% saving by reducing or eliminating Dy (BTW, that was only on the motor part), what do you think they will do if NdPr prices double ? look at the price of copper, and as I have mentioned all the car and motor manufacturers have alternatives to REE permanent magnets. Different tech so different mfg methods, once they change, it will be long term change.

And lastly, I believe that AL has done a good job, I doubt that they would have avoided administration if not for her efforts and I believe she deserves every dollar she is getting.