lynas 31 mar 2013 cashflow report

Lets forget the hype and look at some cold hard facts for a moment, this may help explain to the bulls why professional investors are shorting the stock and why every time the stock rises it is hit with a wall of selling. To confirm the figured below are from Lynas's own financial reporting statements, specifically the Quarterly Cashflow Report.

1. Net decrease in cash for the quarter ended 31 March 2013 = -A$32.45m

2. Cash at end of the quarter 31 March 2013 = A$193.75m (A$21.8m of this is restricted cash for Phase 2)

3. Expected cash outflows for the quarter ended 30 June 2013 = A$83.93m

Therefore based on the expected burn rate for the quarter ended 30 June 2013 and excluding the restricted cash, the company has enough cash to get to the end of the year.

For those people who think the company will generate enough cash from sales within a period of only 6 months from now, then they should buy the shares. For those people who think this is a bit of a stretch (myself included) then they should withhold from doing anything as if the current situation continues additional equity financing (share placement) will be required late this calendar year / early next which will likely give a much better entry point.