Capital raising?, page-30

Lets define what cash flow positive means. It does not mean that Amanda says it is positive with yet a new definition. Looking at Q4 Cash flow report, top of Page 4 is the cash flow from Q to Q. Note that both Free (very little change) and Restricted cash are negative in spite of what Amanda says. Do you agree That this is the way it should be judged?

Next is amount and if any one thinks they can guess this they are fooling themselves. As I have said before this is a easy number to legally manipulate. All you have to do is slip a payment or two from September 30 to Oct 1 and poof better free cash. Or one that Lynas uses, as well, is receive an order in September for a delivery in October. Offer the customer a discount or some other favorable terms if they will prepay a percentage of order when it is placed. Instantly free cash goes up. In both cases Balance sheet and P&L show clearly what happened. You can guess at Prepayment By looking at sales and cash receipts. When cash receipts are higher than sales then there was either back payments collected or prepayments. Now receivables at end of Q4 were $3.065 M sales 44M rounding that is 7%. Times 90 days is 6 days Most companies run 30 to 45 days. So I see no chance of any improvement in collections. So looking at Q4 page 3 we see Sales revenue which is actual sales and sales receipts which is cash If cash is bigger than recipes free cash gets raised by about that amount. It is just an off the book loan from future shipments. Note Q4 it was smaller for some reason they always unwind a little before Annual report.

We have no vision into payables in the Q reports.

For an example of how the cash flow report can mislead view into the company, look at all of last year.
Cash July 1 2015 Free 31.3 Restricted 20.6 total 51.9
Cash June 30 2016 Free 10.4 Restricted 32.9 Total. 43.3

So a drop of 20.9M in free and 8.6 in total. For the year. Remember all of the Restricted should have been paid to creditors and some day they will have to do this. On balance sheet restrictive cash effect is zeroed out. It is a positive in cash but the unpaid interest is a liability so it does not affect Equity.

During the same period lets look at Equity which is a true picture of weather the company is increasing or decreasing in value. Annual report page 35.
July 1 2015 183.2 M
June 30 2016 71.2 M
A decrease of 92 M


Why is an easily manipulated number that showed a decrease last year of 8,6M when the actual was 90M, so important to you??? Is it that you have lots of shares and looking at total picture crushes your dreams of future wealth? That you can keep your dreams by continually saying volume up and Plant quality is improving and not looking at deferred debt (I proved to you no interest or principle was paid into reserve cash Q3, Q4 like you said it was).


You did give me a positive number. I would really like to see how you got it. I will give you a number that is Equity will fall about 5 to 7 Million. Restricted cash will go up by the amount of interest due in September. I think, do not know, that free cash will go down, maybe allot. The simple reason is This Company is going to need a Yes vote to some very important questions in the next couple of months. Amanda will start unwinding some of the things she has done to pump up free cash to give the dreamers, a bit of reality so that they are more likely to vote Yes. All she has to do is pay 20% to 30% of payables and poof free cash is gone or negative. This is legal and actually needed. I point out what Amanda has done not because I feel it was wrong. I think she should be congratulated for keeping the company going as long as she has using these tools. For stock holders it is imperative that they understand the long term consequences of these actions.

Goofy are you going to reply to my comments where you said I was crazy? You were correct in a few of your comments but way off on others. You quickly changed subject to Cash flow with no comment at all. Your silence says allot about character.

A few other comments not related but I am limited to message count.
Some holders seem to think MT K warrant price is $0.5x If they were stock holders last year they should remember resolution 6 in last years proxy $0.038 is the price. 174 M shares. MT K paid about $1.25 for each warrant.

Contrary Jay is the name I have held this since Someone gave it to me near the end of the Dot Com run up and it is the only handle I have used since. I was saying dot com was a big bubble and buying puts like crazy.
I had major holdings in Lynas but when Nick was either fooling himself or lying about status of LAMP 1 I sold, It took a few weeks at US $1.4X. I did not hold LYC I held LYSCF and LYSDY. I have several friends that still hold. One still has a positive outlook. The others do not, but say why sell. I disagree I always look at where I am and look to maximize return even if down 95% I would rather have a nickel than nothing. Two of them encouraged me to move to this board when yahoo closed both wanted to see arguments to my opinions. They both still post here. I am retired and it is fun.

Right now it is possible that I will become a holder again. If they do not go private and I think the restructure is good I see this as the first real chance to get back into REE. Prices will go up. I watch MCP bankruptcy carefully because that may be an opportunity as well. MCP volume could become a negative for future price increases as well, hurting both companies. Right now MCP is stalled.

Holders here keep saying that I don’t understand the improvements made. I do and they Lynas has gone way beyond my expectations considering what they started with. Trouble is basic design only allows so much without major cash input. I believe the debt left by NC and the continued low prices have left a wall that they cannot get over without some real pain. I would prefer to join after the wall is scaled, if I can.

Jantimot I totally agree with your opinion of Stock holders supply Creditors with equity. Not in 2016 but for the two years before it was over 100M total. I brought it up on another board, US, about 6 months ago. There was instantly many posts saying stock holders class action. There will be no equity. There is insurance but to sue Amanda to get at her insurance you have to prove she deliberately lied or mislead and an expectation of return on your stock was reasonable. Neither of which I think is doable. So I have been avoiding this discussion. Good luck with it.