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clock Created with Sketch. 30/06/17
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Originally posted by ContraryJ
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Pay of US$100M in a year??? Remember all debt is in US$. Have you even tried to figure out what Kind of Nd PR price that would take?. Hint they are still losing money on the P&L. all profits come from NdPr. Q3 they sold 1373 Ktons of ND PR. Even if Ce and La jumped more than 100% to $4./ KG there contribution would be small. page 12 of H1 report Recievables were 11M payable 49M. In a well run profitable company these are usually in balance. and about 60 days of revenue. Do you think any money should be used to reduce payable before paying money where it is not due? I am not saying this is bad management, it is good management when cash is a major problem. As things change it has to be taken care of.
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Well DD did not specify US currency and since Lynas reports in AUD, then happy to take it as such. Paying down Aud$100m in debt over the next 12 months would certainly open up possibilities re refinancing. More importantly, it is not as improbable as you might think. NDPR prices already hovering around us$40. At current production levels circa 1400tpq, together with revenue from the other products,this very quickly runs to revenue around A$85m per qtr. At cash outflows of around A$65m including interest, I dont see a problem with being able to pay down A$80 to $100m by next July. Now if prices go up again, well, you can do the math, as they say. A lot will be revealed within 4 weeks I guess.
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