Ann: Becoming a substantial holder, page-41

Conviction Calls

By Rudi Filapek-Vandyck, Editor FNArena

It'll happen, says mining analyst Christopher Ecclestone at London-UK based Hallgarten & Company; rare earths will have their second coming. Investors preparing for the next specialty elements boom just have to be a little more patient.

In Australia, UBS retains a positive view on come-back kid Lynas Corp ((LYC)) which shouldn't surprise given the broker's price target is no less than 78% higher than where the shares are trading at.

Earlier this year, it seemed Lynas was making a successful come-back from the darkest corners of the local share market, where one also finds Millennium Services ((MIL)) and Sundance Energy ((SEA)) to name but two, but that successful come-back has since turned into yet another nightmare for investors who stayed the course with the share price down around $1.80 from $3 in May.

At least the shares are still a long way away from the 38c they were trading at in the darker days.

Analyst Dylan Kelly at CLSA cannot believe it has once again come to this. On his calculation, the Mt Weld operation as a stand-alone business would fetch a valuation of $3 in the current context. He thinks investors are running scared because of potential for renewed political obstruction from the freshly elected Malaysian government (previously in opposition).

No double guessing as to why CLSA carries Lynas as a Conviction Buy, sorry, make that a High Conviction Buy, reiterated on Friday with a price target of $4.10.

https://www.fnarena.com/index.php/2018/09/13/rudis-view-lynas-noni-b-and-citadel-group/

TBH I think UBS & CLSA analysis is a bit too bullish. Somewhere in between would be the safer bet IMO.