Lynas ASX: LYS 2021
The above graph is what one brokerage firm is saying about Lynas. I don’t think a lot of current investors are taking into account that there is a huge economic trade war going on with China Vs the majority of the rest of the world including Australia, USA, Japan and India just to name a few and hence why they formed the (Quad Alliance ) DYOR. Those trade tensions alone are putting huge pressure and heavily impacting on the supply Chain of Rare Earth.
The last time China restricted supply just to Japan in circa 2010 until Japan found a new source for Rare Earth supply which worked heavily in favour of Lynas and its Mt Weld REE project DYOR the price of Rare earth such as
Dysprosium for example went x10 fold DYOR. I have also provided a graph below but please also do further research. Now please taking into account China is now restricting REE to the rest of world this time not just Japan as China has an estimated 90% world wide supply monopoly on Processed Rare Earth. Huge huge economic leverage. Giving Lynas even more potential for a longer , much more prosperous and stronger future.$
Another thing Most investors probably don’t realise is that Rare Earth is traded in Kilogram not in Tonnes like most other metals REE is hugely expensive in comparison. For example 1tonne of Iron ore is currently trading @ $170 / tonne (1000kg) where as the current price of Rare Earth
Dysprosium is currently around @$970/1kg and rising. Iron Ore alone has made a lot of Australian’s billionaires overnight i.e Gina Reinhart Hancock Prospecting and Andrew Twiggy Forrest FMG .
The graph below demonstrates the impacted price of
Dysprosium between 2009 to 2013 and up until the China Vs Japan trade dispute the price of
Dysprosium was idling around the USD $250 /KG mark for many years until the China vs Japan 2010 trade dispute and went to an all time high of $2500/KG just from that short lived trade dispute Between China and Japan. It put huge upside pressure on the price of all Rare Earth’s world wide. It also sent Lynas to an all time high of AUD$25+. But unfortunately great times don’t last forever and the Tensions with China and Japan settled. But Japan still heavily invested in Lynas for the future as they could not economically risk another REE trade dispute with China again.
Please keeping in mind that was just a short lived trade dispute between China Vs Japan which had that profound and dramatic impact on the price
Dysprosium world wide which is just one of the 17 elements considered to be Rare Earth. DYOR to see what the price history of other rare Earth’s elements are and have been in the past and what there required importance are, I’m just using
Dysprosium as an example as it is one of the more commonly known and most widely used and required REE.
Hence why I think Lynas hasn’t even reached the tip of the iceberg with its SP and LYS is in a great position to capitalise on this new economic situation with China vs The World at this very moment. And with Lynas -USA and Pentagon contract just being signed off the sky is the limit for this unique, and significant highly undervalued great Australian mining company ! Have a great day . Also DYOR and invest wisely.
Best Regards
FBuffet
(20min delay)