RARE earths producer Lynas Corporation is expected to pass an important milestone in the next 48 hours, when the first feedstock passes into the company's controversial refinery kiln in Malaysia.
After a troubled period in which opponents delayed the start of operations at the refinery by more than a year, the company is now hopeful that its battered share price can begin on the long road to recovery.
Investors seem to be regaining confidence.
After touching its lowest point in 28 months about a week ago, Lynas shares rose by 30 per cent in the past five trading days. They will open this morning at 72¢.
One observer familiar with Lynas' situation noted that only a change of government in Malaysia could now derail the company's progress.
''As far as the current government is concerned they are through the forest. But it could all change if there was a change of government,'' he said.
Malaysian voters, many of whom are concerned about the health and environmental impacts of the refinery, are expected to go to the polls in the first four months of 2013.
Containers of the company's rare earth concentrates, delivered from its Mount Weld mine, in Western Australia, arrived in Malaysia under tight security in recent days, and are now ready to be fed into the kiln.
While that milestone could be passed as early as today, it could be 2013 before Lynas' customers receive the products.
LYC Price at posting:
72.0¢ Sentiment: Buy Disclosure: Held
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