US Venture...

I really enjoyed the QR and in particular I paid close attention to the progress in the US venture.  Some friends and MP supporters are convinced that the project is to be constructed by Lynas and turned over to the US government with some pretty complicated negotiating.  I was under the impression that the US venture was to be a 100% Lynas owned venture but I wanted to make sure my information was correct.  To that end I sent the questions to my contact at Lynas and I cut and pasted the questions and answers below…

First of all, we were  wondering if the US venture will be a 100% Lynas owned entity or will there be some sort of share agreement with the government?

“The U.S. facility will be a commercial rare earths processing facility owned and operated by Lynas. The grant funding from the DoD is to support the development of a U.S. rare earths supply chain and strengthen supply chain resilience.”

Also, Amanda mentioned that work on the heavy facility will beak ground before the end of the year. We were wondering about the estimated construction time and estimated time of completion…

“As noted in the recent quarterly report, earthworks are expected to commence at the Seadrift site by calendar year end, subject to all necessary approvals being in place. As previously advised, the Facility is targeted to be operational in FY2026 (1 July 2025 - 30 June 2026).”

I really don’t think most people including myself really understand just how big this is for Lynas.  The government awarded a contract to Lynas for this facility after it looked at all viable players. I was told by a different source that MP Materials turned down the grant because they didn’t not want to commercial but I couldn’t verify it…

Bottom line, I think I could avoid using Lynas charts and just follow the price Nd/Pr as the share price.  Most investors have little idea of the depth and scope of the Lynas operation as a whole because it is very complicated.  There are a few astute Lynas investors (mostly on this board) who understand the company in depth and for most investors, it has required much patience…

Hopefully the US venture will share the same success as the recent realignment of resources at the LAMP in Kuantan, the upgrade to Mt Weld and the commissioning of Kalgoorlie.  Time will tell as these projects reach fruition but with things moving fast, the US plant could be operation a little more than 14 months from now…  JMHO...