today's online the australian - lynas soars, page-23

bsumisu :)

I see a lot of denial of my reasoning but no actual alternate reasoning that counters mine! I believe - There is an awesome amount of faith and hope being expressed with little financial or business understanding backing it!

That LYC will continue through to profitability without major changes in funding is highly improbable IMO. LYC exists in the real world with unforgiving bankers, lenders, customers and shareholders like the rest of us!

Admittedly my last post was designed by me to explain to you - how serious these timing issues can be for LYC LT investors, by painting the picture of the worst case scenario of the management not acting wisely, clients delaying payments, and creditors calling in the receivers when the cash runs out and default occurs.

As has been said the picture is probably too dark because LYC management surely can't be that stupid? (Though it does happen!) They would know what I have described can happen and would have done something to avoid it to protect the shareholders interests or their own interests at the very least!

The only thing that really causes concern is that in their company releases and updates they don't even seem to be aware it could or will happen! Basically they are in denial and nothing seems to currently be in place to deal with the coming fiscal event! If they do nothing it will only get worse, much worse IMO.

Funny enough the auditors knew it about it - hence the going concern provision and cash needed provision in the Half yearly report.

I wonder if the reason for this reluctance to act is that their hands are already tied by the prior lending agreements? So they have gone silent and just hope to muddle through!

When I looked at their guidance and the last financial report I could see this was coming even then and suspected that they could too! Which explains is why there was no teleconference. They where worried that a insto analyst might ask them about the "going concern", so it was scrubbed.

If anything the last update with production near half what was needed to avoid the coming event, just confirms for me that the fiscal event is coming as I expected!