LYC 0.34% $5.93 lynas rare earths limited

catalysts for sp increases

  1. 487 Posts.
    1.Basket price of Rare earths increases – at today’s price ($37.45) I get a SP of $1.13 ($37.45 – Costs of $15 = Profit of $22.45 x 11tonnes =$246 million profit, at PE ratio of 10, and 2.17 billion share on offer = SP of $1.13)
    Same calculation with a basket price of $50 = $385 million profit and SP of $1.77

    2.Phase 2 starts – so 22 tonnes at today basket price with above calculations = $2.27 ($37.45 – Costs of $15 = Profit of $22.45 x 22 tonnes =$493 million profit, at PE ratio of 10, and 2.17 billion share on offer = SP of $2.27)
    And then if we get a basket increase up to $50 we are looking at $665 million profit and a SP of $3.06

    3. Malaysian elections – a de-risking of the political situation in Malaysia will also act as a catalyst to the SP

    4.Duncan deposit development on HREE’s

    5.Siemens, BASF and other JV’s come on line

    6.Potential Acquisitions of other Rare Earths explore like NTU

    Indeed there are more hurdles and risks ahead but the future looks bright for those that can continue the journey

    Cheers and remember DYOR
 
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