their earning were AUD 0.18 Last year. Lets say they arer 0.36 next year. a reasonable but high estimate. At an 11:00 SP that says they are earning 3.3 % on stock price. Other than selling stock or assets there is no other source of income to grow with. So the company may show 3% next year of current stock price. That is less than inflation in US and AU. It may be less than US 10 year bound yields in a year currently 1.65%
Every thig you say is true. Normally a company of this size would have a couple 100M shares Lynas has 900M + I like Lynas I agree with you about their strengths but Market cap is totally out of Wack. This stock has gone up 11 X in just over two years, they had a loss two year ago What do you see in 2023, 2025, 2027. that will let them earn 10% of their market cap. NdPR selling for 600 AUD a KG?
Do yourself a favor rayther than look at all the pluses which you have down pat. Figure out what it will take to earn 10% on a market cap of AUD. 10B use 10.5 KT for ND Pr and figure out how much higher NdPr has to be for them to earn AUD 1B. Think of what may go worng.
LYC Price at posting:
$11.10 Sentiment: Sell Disclosure: Held
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