LYC 0.50% $5.92 lynas rare earths limited

Debt problems not resolved, page-4

  1. 3,237 Posts.
    Bigger Al, I agree .... from now to June 2018 is a long time in the world's markets

    once again however you are only taking a glass half view full of the Lynas world

    there is only one thing in my opinion which can save Lynas .... THE NEW METHOD OF COMPANY FUNDING ...

    that's right, I believe Lynas needs to use the new method of raising money ... by entering into a "strategic partnership" and the strategic partner providing a substantial cash injection in return for shares

    funds could be used to retire some of the massive debt overhang

    the benefit to existing shareholders (strategic partner funding) is that shares issued from such raisings usually don't find their way back onto the market in a hurry

    the worst thing Lynas could do in my assessment is to use a broker to raise money, because more shares than necessary are usually issued in the process (my opinion), not to mention the extraordinary high cost of broker underwriting fees which can be avoided by strategic partner funding

    best to all Lynas shareholders
    Last edited by longtermlegs: typo 30/08/15
 
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