Critical Mass

Recently the ball game has been pretty rough in Kuantan, Amanda has had her hands full trying to manage the continuous challenges that keep plaguing any brief success on the business side of things. Just think where we would be if the Malaysian government actually created a conducive environment for Lynas and encouraged technological advancements and full production...

That's why Hangxs' post is so relevant. As I understand it NTU recently announced expansion plans in Western Australia which resulted in a 35% increase in the share price. I am not interested in NTU as an investment so I am guessing, but I would be willing to bet that the financials of NTU don't stack anywhere close to those of Lynas...

Lynas is well beyond the proof of concept stage and is the world's leader in REs producing actual REs for a sold out market in a rapidly growing industry. While NTU is competitor of sorts they are well in the rear view mirror and in a different lane. It stands to reason that the excitement generated by NTU would pale in the excitement generated for any Lynas expansion plans...

My guess, should the worst case prevail in Malaysia, is that Lynas has the credibility and the critical mass to take their operations elsewhere. Just as NTU benefited by the announcement of their expansion plans, Lynas could appreciate the same benefit by announcing their expansion in their appropriate location...

Of course the issue of cash raising immediately comes to front but the same critical mass that keeps the conveyor belts spinning would be reflected very favorably in any debt issuance. Lynas has great credit, relatively little debt and a whole host of IP and experience just ready to be put to good use...

Just some idle thoughts and I really hope things work out in Kuantan but it's nice to see a competing company in the same industry generate excitement on expansion news... JMHO...