Ann: Temporary Halt to Production at Lynas Malaysia Plant, page-5

I'm sorry to bring gloom, but this is bad.

Two of my employees are Malaysian. They tell me the situation back home is not good with everyone in lock down and the army on the streets. If Lynas cant stay open there is no telling how long the lock down will last.

Reading between the lines my original estimate of 8M free operating cash flow seems to be on the money.

"Lynas currently expects to achieve positive cash flow from operations during the March quarter, before payment of approximately A$14 million relating to the Permanent Disposal Facility (PDF)"

The use of the word before implies cash holdings will decrease for the quarter, as operational profit is not more than $14M .

The important thing is not to panic. Statistically speaking its often better to hold and ride it out, then to sell and attempt to buy back later. (I know many disagree with this strategy on this forum).

Until we get further clarity on what this lock down looks like, how it will affect forward cash flow, and how long it may last, I will not be buying.
I've cancelled my order at $1.01, and change my sentiment back to hold.

Being the optimist, I always like to end on a positive. The PDF contract for 98M USD, is written in MYR. Since the announcement for the 98M USD price tag the MYR has fallen 8%. With the lock down and continued economic situation in Malaysia, by the time we get around to building it, it may only cost 50M...