First you are correct if bounds are converted to stock it takes no cash. Major increase in equity no change in profits or cash. I have said this before but in trying to say what I meant to say it does sound like both. I am sorry for the poor communication.
The First two statements in the Mt K Statement seem to conflict one another I seem to have concentrated on the second.
"30 September 2020 (or if the Senior Facility has been earlier repaid in full, then the date that is 3 months after such early repayment date of the Senior Facility)."
BUT this conflicts with the next statement.
"To be amended to allow conversion up to (and including) the new Maturity Date, being 30 September 2020."
I want some time to think about this. Maturity date usually means Lynas can pay off any un-exercised bounds at face value US 1.00.
I want to look at these statement in a few documents that came out after this to see if it is clearer. Maybe have someone else read it that I trust but there seems to be a conflict will reply to everything else in a day or two.
So this is good for dilution but where does the cash come from. with defered payments the Jare debt is nearly US 250M but some of this is forgiven if they meet certain conditions. They also have several large expenses coming up in the next 3 years like overburden removal and mining campaigns. Even if La and CE go up 50% and sales double and Nd Pr goes to $60/ kg and 6,000 KT a /yr , all with smooth ramps between now and Dec 2019 I do not think they will have the cash to clear the Jare loan.
LYC Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
(20min delay)