Usually stocks follow well in advance, and Lynas is in my opinion over-sold here. Both you and I have no idea where the price of NdPr will be in the short term. Though I am banking on there being higher prices for longer over the longer term. The selloff due to Tesla jawboning is an opportunity to jump into a company with a long tailwind and growth runway. Investors with any sense of foresight have been provided a gift due to Tesla. Close to 1 billion of cash in the bank, using 500 mill for production ramp up, a market cap of 5.9 billion, a multi decade asset, backed by multiple governments around the globe including the USA. The project is globally significant.
You say you see revenue dropping because of REE pricing? Considering they are ramping up to 12kt pa NdPr final production; have you plugged in the numbers for those figures based on your future projected NdPr prices and compared them to what they are doing now? Lynas at these levels is cheap. The chart has hit support and goes back up on Monday.
LYC Price at posting:
$6.34 Sentiment: Buy Disclosure: Held
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