LYC lynas rare earths limited

Restate In-Ground Asset Value, page-3

  1. 9,244 Posts.
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    IMO, you cannot produce all that output - the measured resource in one year. Not all the measurable resource will also be recoverable because of capex requirements (investment needs to meet IRR), You then need to use a discounted cash flow model to determine the discounted profit level to translate to a SP. I agree the SP is undervlued but believe its best possible outcome is to reach 30 cents by mid next year.

    Valuing resources is quite risky - BHP has 300 billion tonnes of iron ore in the Pilbara. At that resource you would think its share price would be massive - ultimately it is what you mine, the capex and opex costs associated with that in the next 5 - 10 years which determine value. Discounting the revenue stream after that doesn't add much to the share price given the discount rate used in this industry - it is expectations of future profit that drives SP growth. The value for LYC is what a third party is willing to pay.
 
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(20min delay)
Last
$6.85
Change
-0.210(2.97%)
Mkt cap ! $6.402B
Open High Low Value Volume
$7.10 $7.16 $6.84 $14.46M 2.086M

Buyers (Bids)

No. Vol. Price($)
1 8263 $6.85
 

Sellers (Offers)

Price($) Vol. No.
$6.88 11830 3
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Last trade - 16.10pm 02/04/2025 (20 minute delay) ?
LYC (ASX) Chart
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