10. LREE's prices are rising much faster than HREE's
The graph above was generated using market data located on Lynas's web site.
http://www.lynascorp.com/page.asp?category_id=1&page_id=25 on Jan 31st 2011
LREE (La,Ce,Pr,Nd,Sm) growth since 2007 = 1202%
HREE (Dy,Eu,Tb) growth since 2007 = 143 %
LREE’s are more prevalent, but their cheaper price may have made them more interesting to researchers and companies trying to develop new products and thus their demand has grown faster over time. If this is the case then this trend should continue. Their price growth will likely slow down as they approach HREE values, but for the next few years LREE's might still greatly outperform HREE's and approach a near pricing equivalent.
Molycorp's operation will predominantly produce LREE's. Some investors are focusing on the higher prices currently offered by HREE's. Many of these elements have very similar chemical properties and as such if a cheaper element can be formulated to perform the same task then a company will try to substitute when feasible. The current LREE price is only 15% that of the current HREE prices. The next 100% run up in prices should be much easier for the LREE market and will greatly benefit Molycorp.