LYC 2.72% $7.14 lynas rare earths limited

lyc sp to recover as sales increase .., page-5

  1. 12,484 Posts.
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    Can't rule it out OMG. Take their figure of 750t p.m. being sufficient sustainable production to cover Opex at break-even.

    That leaves sales on 160t p.m. (1920t p.a.) for debt servicing and non-Opex.

    Let's throw out an arbitrary $50m p.a. for debt servicing alone. That would mean at today's input prices (sales price - costs) an average sales profit of $26 per kilo would need to be realised to service debt. Ain't going to happen.

    IMO, the debt hurdle looks insurmountable with anything less than a lift in the basket price to about double where it is now.

 
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