any explanations for today?, page-4

Hi KirbieCat,
I am not saying that this is the only reason,however it helps sentiment on the REE's
This article comes from ORD MINNET newsletter
Please bear in mind, that I have lost a lot of money following their recommendations, one that comes to mind is TLS a while ago, so no one is perfect, however Brokers can make or break a Share

Lynas Corporation Limited (LYC A$1.56), Hold (▼)
Time to let project delivery catch up with the share price
􀂃 Following a period of very strong share price out-performance, we downgrade our recommendation on LYC to Hold and
retain our $1.71 Jun11 price target. Since late Jun10, LYCs share price has risen 184%, compared to a 5% rise in the
ASX/S&P 200 and a 10% rise in the ASX/S&P 200 Materials Index. The key driver of LYCs share price rise has been the
sharp increase in rare earths prices. LYCs Mt Weld rare earths basket price has risen more than 240% from US$17.42/kg as
at 28 Jun10 to US$59.77/kg as at 25 Oct10. In turn, the key reason behind the rare earths price increases have been actions
by Chinese authorities to reduce Chinas rare earths export quotas and initiatives to consolidate domestic supply. On this
front, we wait for news of China's export quota for 1H CY11, due to be announced as early as Nov10 or as late as Jan11.
􀂃 Although industry conditions remain favourable we note that LYCs Integrated Rare Earths Project (IREP) remains at risk
from unforeseen cost inflation and/or commissioning delays. Importantly, we believe the current share price is already
factoring in much of the upside from successful commissioning of the IREP, hence we think further good news is required just
to support the share price. As part of its Sep10 quarterly report, LYC reiterated that the project remains on time and within
budget and expects to commission the concentration plant in WA in Jan11 and commission the Advanced Materials Plant in
Malaysia in 3Q CY11. Looking ahead, we may also receive an update in the coming months on the Group's progress on
finalising a funding solution for the expansion of the IREP. We currently assume capex of around $160m for the Phase 2
expansion of the IREP. Our current forecasts assume this is debt funded, but given the strong share price appreciation we
certainly cant rule out an equity raising to fund the expansion.
􀂃 Overall, we believe LYC has a strong competitive advantage given its position as a viable source of new non-Chinese supply
of rare earths. However, given the stocks recent out-performance and potential risks around the timing and cost of delivery of
the IREP, we believe investors should consider reducing their position. We continue to watch for further progress in bringing
the IREP on-line including completion of the concentrator by early CY11E, securing funding solutions for the expansion,
executing further customer offtake agreements, updates on the construction schedule and marketing of synthetic mineral
products.

Ciao,
Tony