Presuming every serious investor here could do a rudimentary update, the following illustrates Lynas' greatest unquantified asset, the reason you'll never see any contract detail, and why every wannabe glossy ends in a warm, fuzzy black hole:
The current RE supply chain is an incredibly skinny beast, and if I'm reading the Dragon squeeze play right NdFeB downstream is now about to get a whole lot skinnier internally, and you could just about count the ROW players of any significance on one hand, and they are all Japanese, bar perhaps Neo, which is a tad difficult to qualify ATM.
Lynas engagement to market is totally unique, built laboriously over virtually a decade, now "proven" to a large degree with a solid track record of steady state production, by contrast Moly's abject failure to engage markets was a major factor in its downfall, wannabes not a clue, as evidenced by the perpetual glossies (graphic designers must luv RE "industry").
Investment mkts will no doubt focus raw financials, quality Mt Weld, scale efficiency LAMP, but eventually they will figure how Lynas de-commoditised RE and built pricing power:
"A product essentially becomes a commodity when customers perceive little or no value difference between brands or versions. Price becomes the only differentiation.
Like death and taxes, commoditisation is a given. So what’s a business to do? The answer is to de-commoditise…but not just once, continuously!
“Constant reinvention is the central necessity at GE…We’re all just a moment away from commodity hell.”– Jeffrey Immelt, Chairman and CEO, GE."
From upstream that's a function of being V close to end customers wants & needs, current & future, and creating product/service to suit.
Specialty Chemical Co., without peer, take the tiny, myopic ASX an eternity to figure that.
LYC Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)