Noutram / SteauaOilers / bbqdays previous MDA discussion

Page 12 of the 2012 Q3 MDA

"Alternatives are also being evaluated for rare earth metal making equipment to convert the REOs to the final form required by LCM which will enable the Company to become a fully integrated REE supplier."

This appears to be our answer to what was meant by the above?  The following was posted by StealingHome with reference to Byron Capital:

"Our analysis suggests that, should it be necessary, it may be to GWG’s benefit to initially toll process its REOs, especially for Nd and Pr content, either in China with GQD or elsewhere in the world, and defer the necessary $30 million expenditure on the JV-built SX plant in South Africa."

How does this paragraph, also from MDA page 12, relate to the above?  Does  it mean that if we postpone the SX facility we will be penalized?  Not sure exactly what "... commercial production ..." refers to.

"The timing of the commissioning of the Separation Extraction Facility is a key factor in the Company’s business model, and failure to achieve the targeted deadlines may have a material adverse effect on the Company’s business and prospects. Failure to achieve commercial production by October 4, 2014 will also cause a downward adjustment in the conversion price of the Company’s bonds."