The conference call was very good as expected, Amanda (CEO) and...

The conference call was very good as expected, Amanda (CEO) and Pol (VP of Downstream) seemed to be in their usual cheerful moods as they joked about the high tech camera system (a laptop) and how they had to sit so close for the presentation…

It would appear someone forgot the camera and the screen just wasn’t big enough for the two of them. Anyway, the senior staff is still largely the same since Amanda took over and it was good to see that like old friends they are still joking around…

Amanda seemed very positive about the future but tempered this by discussing both the Covid complications in Malaysia and the water issues in Kuantan at the LAMP. Both seems like manageable issues and I know Amanda mentioned in the last call that the water issues at the LAMP will be mitigated by a new process (probably recycle efforts). As I recall the savings were around 35% which would be a significant overall reduction. Due to technical issues I was unable to ask Amanda if the C&L in Kalgoorlie will free up some water resources when KG is commissioned, a question for next call…

Amanda spent a good deal of time on the US/Blueline venture and judging from the amount of specific information she offered it would appear that the US project is receiving more attention than we previously thought. If I heard Pol correctly the US production facility at buildout will produce 50% of what the Japanese magnet makers are producing. This is a significant amount of RE’s which includes separation of both the light and heavy elements…

Amanda loves to talk about Mt. Weld a Lynas wholly owned mine that would easily make a stand alone company in most markets. At one point Amanda remarked that the recent successful drilling revealed continuous mineralization to the bottom of the test hole. A small comment with huge implications that went unnoticed by many but will mean everything in the future…

Amanda also discussed some capital projects underway at the LAMP to improve throughput and modernize the facility. As she put it the new projects will “ensure the integrity and update processes”. It is good to see that improvements continue in Kuantan alongside the new projects to keep everything current…

Gaudenz (V.P. Finance) jumped into the call when questioned about the tax-free status Lynas receives from the Malaysian government. To my surprise the tax break will continue for 3 more years, pretty good news…

It is the IP and experience that sets Lynas apart, clearly illustrated by the recent $120m contract awarded for new separation facilities for both the light and heavies. It wouldn’t surprise me if the US project were under a double top secret accelerated pace but this is personal conjecture only…

All in all it is another great report, anyone who thinks a profit of over a half billion on revenues of nearly one billion is a mediocre performance does not appreciate the days of old when positive cash flow itself was in question. Lynas continues to motor along making progress while releasing great news that is quickly tempered by the global markets...

The most impressive and certainly most consistent display of market influence is Amanda’s uncanny ability to tank the US market with another excellent report. I don't know that I have ever witnessed a company that has been subjected to the wrath of the timing gods in such a consistent manner. In spite of this, news at Lynas continues to be positive on many levels and it is just a matter of time before investors actually understand Lynas as a company and the market prices LYC accordingly... JHMO...