- More stable pricing for product after previously elevated sale prices (Costs in sulfuric acid doubled and capex increased)
- High cash balance, Kal being funded by cash flow which is pleasing
- Water issues in Malaysia have been mitigated
- AELB ratings was the highest possible rating
- issued listing for gas/hybrid power station for WA operation & pilot solar plant in Malaysia
- fundamentals remain positive in rare earth space (demand continues to remain strong)
Malaysia: team remains excellent and highly skillful. stressed to the government the importance to Malaysia of the Lynas presence and emphasized the Safe & low risk of the operation.
- Hopeful of a positive outcome. will look at administrative and legal appeals. At the moment they are 2 administrative appeals that have been lodged.
- Significant employment opportunities. Looking to educate upstream and down stream potential jobs associated with Lynas malaysia and the employment opportunities on both sides Mt Weld:
New earth works commencing Water storage facility being prioritised New stock piles for Kal
KAL:
- Progressing quickly with knowledge exchange between Malaysia and KAL - Important operational building is being priortised US arm: engineering designs complete site identified in the gulf moving along and progressing
Question: Evidence is on our side for Malaysian operation. has the attention of government and regulators. But no timeline at this point.
Not sure if a bridge would be considered if KAL is not yet operational and appeal still in place. Ideally both C&L operational
Plan to build stockpiles and inventory to meet customer requirements. Will basically manage transition until KAL comes on line (citing covid closure etc..been done before)
Will not look to sell concentrate to a Chinese processor to fill any gap
Higher rare earth prices with China still transitioning through zero covid policy is encouraging
12% effective tax rate is due to Malaysia incentive program and Kalgoorlie building program
100's of jobs to be lost in Malaysia if C&L closes, plus many indirect jobs (700 Million ringgit spent in Malaysia by Lynas, Malaysia would lose 1/3 of this funding if closure occurs)
Removing of cracking and leaching material from Malaysia is not possible. Nothing to do with the radiation case. International convention states that those that create the material will deal with the residue. material is also 45% water and is not a feasible option.
12,000 ton NDPR would require an upgrade in Kalgoorlie if Malaysian plant is no longer operational for C&L
Strong business case in the US operation
GLTA
LYC Price at posting:
$8.04 Sentiment: Buy Disclosure: Held
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