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LYC - LYNAS RARE EARTHS LIMITED


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I keep seeing this "97% of capacity" is in China.

 

put it another way. 95% or 97% of current poduction is from China. OK

 

but is the same percentage applying to reserves, resources, etc???????.

 

A better (intuitive) argument to get into listed Aust plays I have not heard.

 

ALK - Alkane

ARU - Arafura

GGG - Greenland

GXY - Galaxy

LYC - Lynas

NAV - Navigator

NTU - NorthTerritory Uranium

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Hi All, but to anyone with more geological expertise than yours truly. As the SP of these two RE miners is now equal, I'm trying to get a handle on these two in terms of company value given this information, at a now, similar SP, are we comparing apples with apples or apples with pears?

Arafura

 

The Nolans resource in the Northern Territory contains 850,000 tonnes rare earth oxides, 3.9 million tonnes of phosphate pentoxide and 13.3 million pounds of uranium oxide. (Reporting by Balazs Koranyi; Editing by Ed Davies)

 

 

Market cap: $471 mill, @ 275,440,000 shares ETA 2013

 

 

Lynas

 

The combined rare earths mineral resource for Mt Weld increased to 17.49 million tonnes at 8.1% REO giving a new resource of 1.416 million tonnes REO, 19.4% increase in contained REO compared to the previous resource estimate

 

Market cap: $2,651 mill, @ 1,550,000,000 shares ETA 2011

 

So the $64 question: is Arafura 17.8% of the company that Lynas is?

 

I suppose the devil is in the detail ie what is the % grade

of the 850,000 tonnes at the Nolan deposit?

 

Any info/suggestions anyone?

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Kelpie - number of shares LYC has is an issue to some i guess - cant argue with the figures on amount of resources each have. As a matter of interest Kelpie does $4 sp this time next yr seem not to hard to invisage after the last 10 trading days? I feel that ARU and others will be riding on the slip stream of LYC and or the RRE future demand and a fair amount of frenzy etc.
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http://www.stratfor.com/memberships/173275..._earth_elements

 

free article -

China and the Future of Rare Earth Elements

October 13, 2010. China's suspension of rare earth elements (REE) exports to Japan offers STRATFOR an opportunity to examine the future of industries dependent upon these elements.

 

REE applications broadly fall into six different categories, with the first being the least impacted by price increases and the sixth being the most impacted.

....(this 6th category) comprises goods for which there are very low ore and metal stockpiles with demand that is both high and rising rapidly, and for which it will take the longest to set up an alternate supply chain. The vast majority of these industries depend on the same type of neodymium magnets used in hard drives, but do not have an obvious replacement technology. These magnets are a critical component in the miniaturization (and convergence) of electronic devices such as cellular phones, MP3 players, computers and cameras. They are also central to the power exchange relays for electricity-generating wind turbines used in today's wind farms. But even within this category, not all products will be impacted similarly. Many of the miniaturized electronic consumer goods manufacturers will face growing pains as they find their supply chain increasingly concentrated in China. But cheaper production costs could offset rising materials costs, and technological innovation will also help lessen the impact. Alternative energy is not likely to be as lucky. Neodymium magnets are critical to windmill turbines, one of the specific areas the Chinese hope to dominate. Each 1-megawatt windmill uses roughly a metric ton of NdFeB magnets.

 

For green energy enthusiasts, this is a double bind. First, green power must compete economically with fossil fuels ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ meaning rather small cost increases in capital outlays could be a deal breaker. Second, the only way to get around the price problem is to advocate greater neodymium production. And that means either tolerating the high-pollution techniques used in China, or encouraging the development of a not-particularly-green mining industry in the West.

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Hi Filter, Yes well, Looks good for $4 when production gets into gear. I'm holding anyway I think you're right ARU and now KOR are right behind in slipstream. Don't want too many more discoveries though!! Chart could be one of those exponential looking things :lol: as I was expecting a target of 94c before Xmas. Seems to have overshot that somewhat!!! Good luck!
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