Time to Sell?…

Lynas as a stock is having a rough time and it appears that the same tanking market syndrome is punishing most stocks unmercifully, including Lynas.  As a “speculative” stock it seems that the volatility is greater but that leaves more room on the upside should we ever escape this sour market.  However, it is this global environment of violence and political uncertainty that Amanda is taking advantage of and it is a pretty good strategy…

Why not sell share now before it goes down even further?  First of all, nobody can predict the future performance of a security, which makes the practice of buying the company and not the stock vital in these times.   It s true that the LAMP will be shut down for upgrading next quarter along with modifications that will make the flow and consequently the output of the LAMP a balanced system.  Quite simply, starting the LAMP and associated processes takes significant time as the SX (solvent extraction) circuits are brought on line.  While this may result in some short term pain, long term will pay off in spades...

One does not immediately realize the size and complexity of these two sites that are running consecutive processes of C&L and separation.  Add Mt. Weld which provides  the ore (the product itself) and we have an amazingly complex set of processes that all working together to spit bags of processed rare earths from the loading dock in Malaysia…

Should the shutdown cause concern?  Short term maybe, it seems that some investors are more interested in instant gratification and that is not what Amanda is all about.  Instead one of her major concerns is that existing (and valued) customers continue with an interrupted supply.  To counter this Amanda is stockpiling and storing product in various ways to provide that continuous supply to those who bailed us out…

Understanding the complexity of the entire process and utilizing the extensive intellectual property and experience, Amanda discussed how some of the LAMP engineers and other key personnel were relocated (temporarily) to Kalgoorlie to utilize their extensive experience.  This is another example of the resourcefulness and experience of the folks at Lynas...

I mentioned in a different post that Kathleen Collin (Board Chairman) will be departing the board and the new Chairman will be John Humphrey.  Interesting twist,  Mr Humphrey joined the Company as a Non-Executive Director on 15 May 2017. "His key areas of expertise include mergers and acquisitions, corporate finance and corporate governance."

Bottom line, Lynas continues to grow and while all of the projects are on time there remains a fair amount of work ahead.  The complexity and challenges of being the first  to develop new technologies in this nascent industry are tremendous and there are no other projects outside of China of this scale.  There are no shortcuts and aside from Lynas there is little in terms of increasing throughput (supply) of rare earths amongst the competitors...

There may be better places to invest but I still consider Lynas to be a long term solid investment that has significant upside potential as a function of press releases or news.  Perhaps the future is closer than we realize…. JMHO...