Simple Comparison with China peers, page-2

Great to see someone lifting the tone up around here and gazing beyond the navel.

Difficult to make direct revenue comparisons Big6 as they are all diversified horizontally or vertically, usually both.

One straight line comparison is CoP, recent estimate:



With the attached comment:

Incentive price the way to go
With NdPr market deficit expected to grow to around 7-10kt by 2020 we believe
new supply growth will have to be incentivised by an NdPr prices high enough to
ensure cost of capital is met. Whilst assessing the likelihood of project
development using incentive price analysis is a useful indication of future supply
growth, it cannot be considered in isolation. It could be argued that other
qualitative factors play just as an important role when considering the probability
of mine development.

Qualitative factors LYC vs Chinese SOE's shouldn't be so hard to factor, but one massive one for which we can thank NC's vision based on his 1990's experience China:



LYC can only be compared to Chinese producers, and while difficult straight line there is a mass of data that points to the deep value in Lynas built base.