Ann: Half Year Accounts, page-53

Really good report, we knew most of the numbers but it is always encouraging to see the CEO voluntarily host the most recent earnings calls. Here are a couple of numbers I found interesting, they were in the report somewhere...

The Chinese domestic price for Nd/Pr movement over calendar year 2017...

March 2017...33 USD/kg
June 2017....36.5 USD/kg
Sept 2017.....56.7 USD/kg
Dec 2017....45.1 USD/kg

I guess this is the average price for each quarter but it kind of gives a perspective of where we are and where we have been... Note the high quarter was Sept 2017 about 20% higher than Dec 2017 which should be pretty close to where we are right now... Amanda indicated they are happy with the current prices but are hoping for more appreciation in the future...

The most amazing numbers I found in the report was the earning per share both basic and diluted...

Basic and diluted earnings per share for the half-year ended December 31, 2016

   2017 2016
Basic earnings per share (cents per share)..... 10.49 7.13
Diluted earnings per share (cents per share)... 8.57 6.06

Earnings per share are closely followed by investors and $.10.5 /share (eps at the half) is significant. This means basic earnings per share annualized are $.21/share giving Lynas a trailing P/E of ~10 (Assuming price is $2/share). Anyone following P/E ratios knows that this is ridiculously low for a company with accelerating earnings such as Lynas...

There was a little discussion of the recent meeting of PM Turnbull and President Trump. Amanda indicated she had been in contact with the PM office and agreed to work with the government on developing strategic resources, as Trump indicated, but emphasized that there is no agreement in place... As Amanda put it, In terms of a new agreement, things are still in the "conceptual phase"...

All in all a great report and Lynas is executing it business plan to perfection and the numbers show it... Just think, the next good report is only 6 weeks away...