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LYC - LYNAS RARE EARTHS LIMITED


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In reply to: gem on Thursday 27/01/05 08:58pm

Hi Gem,

 

Good to see you finally active.

 

I bought some LYC on Tue, chart seemed to sniff of some interest coming in.

 

Yesterdays special parcels, and also solid buying backs that up.

 

I would not chase too much, be patient.

 

I am looking for some more, lets hope its not a false start, timing seems about right.

 

hang on to those ADY. http://www.ShareScene.com/html/emoticons/wink.gif

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Coming off a bit as the news dies down, a solid period of accumualtion in my eyes at curent levels.

 

Alternative views always welcome................... we hate to feel we are alone here.

 

http://www.ShareScene.com/html/emoticons/tongue.gif

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barrios

 

had a hugh tip for this stock, out of Perth sept last. Had a look and it made it onto my watch list. Missed both runs in oct/nov and decided to wait for capital raising to fund China project. That and i know sfa about rare earth http://www.ShareScene.com/html/emoticons/icon14.gif

 

Enlighten me http://www.ShareScene.com/html/emoticons/ohmy.gif

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  • 3 months later...

FYI - miningnews.net article on Lynas, and role of rare earths in the new hybrid cars.

 

Lynas cruising on hybrid car projections

Jesse Riseborough

 

Tuesday, May 24, 2005

AUSTRALIAN-based rare earths explorer Lynas Corp says nickel producers are not the only ones who stand to significantly benefit from the projected increase in demand for hybrid cars using nickel metal hydride batteries.

Dr Matthew James, Lynas general manager of corporate and business development, said the batteries used in hybrid cars are comprised of 26% rare earths metals.

 

"The projections that Lynas has done are very conservative in terms of growth of the nickel metal hydride batteries and the numbers projected by more recent analysis, especially by the nickel companies, shows that the growth in the rare earths industry will be a lot higher than we anticipated," he said.

 

MiningNews.net recently reported that nickel majors Inco and Falconbridge had forecast a 50,000tpa global increase in demand for nickel by 2010 as a result of the increased demand for hybrid cars. James said this then equates to a 17,000 tonne per annum increase in demand for rare earths.

 

The rare earths market totals around 80,000tpa, compared to the nickel market of 1.3 million tonnes pa.

 

During the March quarter Lynas completed a feasibility study at its Mt Weld rare earths project, near Laverton in Western Australia, with capital costs for development put at $49.2 million for an open pit mine and two processing plants in China. James said a development decision on the project is expected by the end of the year with production expected to begin within 12 months from the decision.

 

James said Lynas expected to have both off-take agreements and funding for the project in place within six months.

 

"We are looking now for funding and off-take contracts to support that decision so we are very well positioned as the market starts to pick back up," he said.

 

The project is based on reserves of 2.08Mt at 15.5% rare earth oxide and involves ore being shipped to Shandong in China from the port of Esperance where it will be beneficiated to produce a rare earths concentrate and an iron oxide concentrate. The rare earths concentrate will be further treated while the iron oxide will be suited as a rubber and plastics filler.

 

The feasibility study calculated a net present value of $106 million using a real discount rate of 8%, with the internal rate of return put at 30%.

 

Based on a production profile of 10,500 tonnes per annum of rare earth oxide by year two, the project initially generates earnings (EBITDA) of $21.5 million. At the increased rate of 15,000t (expected in year five), those earning rise to $34.9 million.

 

Rare earths is the generic name given to a group of 15 metallic elements used in the electronics, automotive and energy sectors.

 

Between 1990 and 2000 the world demand for rare earths increased from 33,000tpa to 79,000tpa before suffering a recession due to a world economic downturn in high technology industries. Last year saw a resurgence of rare earths with market indicators showing volumes back to 2001 levels.

 

Lynas report a strong outlook for nickel metal hydride batteries with forecast growth of over 35% from 2002 to 2005. Production of hybrid cars is expected to exceed 500,000 for the first time this year with some estimates predicting production to hit two million by 2008.

 

"Those type of applications, which are new applications for the rare earths industry, are really going to accelerate growth beyond what the underlying industry is projecting," James said.

 

One of Lynas' peers is Perth-based Arafura Resources, which holds the Nolans Bore rare earth and uranium deposit in the Northern Territory. Earlier this month it began a program of drilling at the project, which currently has a resource of 5.81 million tonnes at 3.9% rare earth elements and 16.5% phosphate.

 

Arafura is also carrying out preliminary engineering, metallurgical and intra-structure studies at the project.

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