Good News & Bad News, page-6625

Victor's high conviction ideas: Lynas Corp (ASX:LYC) & Pilbara Resources

Vishal Teckchandani: Okay. Iluka for Ben. Victor, you clearly also like Lynas, maybe what's one other really high conviction play up your sleeve?

Victor Gomes: Well, I was actually going to use Lynas, but they put me on the spot now. Look, I'd say I was mentioning lithium before. And I do like Lynas because it's such a unique asset and you are having to take a three to five-year view on this. But management are fabulous, the asset is quite irreplaceable. And I think the opportunity to grow that into heavy railroads through what they're doing in the US gives them another leg of growth. And there's been some issues with Malaysia, but they're sorting that out.

Victor Gomes: But if I was to pick another one, since I'm sticking to that theme, I'd probably go with Pilbara, which I think is the last remaining asset available in this space. All the others have been taken out. Kidman got taken out by Wesfarmers. I'm not sure what they're going to do with that. Wagina is done. And it's now within Albemarle. And we don't know if that's going to work well because the plants being built. So here you have a tier-one asset, I think, long life, low cost. It's built, it's only stage one, but once you've proven up stage one, all you're doing is you're adding another whole bunch of kit that does exactly what the previous kid does. So you just cut and paste.



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