BBY report this morning.Heading in the right direction. Waiting...

BBY report this morning.

Heading in the right direction. Waiting for funding details.

Lynas (target A$0.85/sh NPV A$0.85/sh) followed the
March quarter production comment with the full quarterly
and 5B statement that indicates that the business is
likely to reach its production target of 11Ktpa by June,
cost visibility is excellent (A$19/Kg at 11Ktpa) price
realization was A$23.63/Kg, and we expect free cash flow
after interest costs to be A$8M/ qtr at current prices from
the Dec 2014 quarter. The company is under owned, and
priced for failure. Resolving its debt structure, and
demonstrating operational solvency should change that
perception. It is a A$320M stock in the small cap universe
that is likely to perform very strongly over a number of
years, and will become important for small cap fund
managers to own. We retain our Buy recommendation,
but have reduced our target (prev A$1.00) to reflect the
impact of a yet to be confirmed issue of A$40M at
A$0.15/sh.