"...Costs have since blown out and the project is now expected to cost between $1.7bn and $1.8bn."
What a joke! That project will cost more than $2 Billion and that's being conservative!
The economic fundamentals of this project just continue to deteriorate. To expect the Australian taxpayer to keep funding it's ever growing cost to the tune of Billions of dollars is an absolute farce.
There is now ZERO chance that this project will proceed at this time.
Based on current rare earth prices, and with inflation continuing to add hundreds of millions of dollars to the construction costs I expect Iluka will announce next month that it is on hold for a minimum of 12 months.
With the fall in iron ore prices expected to contribute around $3 Billion less than expected to the Federal Budget, the Government now has even less funds to loan to a mining company to pay for their plant!!!!
Great news for Lynas ... Iluka's rare earth plant is now dead in the water.
LYC Price at posting:
$6.93 Sentiment: Buy Disclosure: Held
(20min delay)