Lynas balance sheet a concern for UBS, JPMorgan, page-2

There is no discussions that LYC will need another debt restructure and this has been clearly stated by AL in the last two qtrs. From my point of view, the company targets for this quarter should be:

1) over 1000 REOt monthly production - hence, 3000 REOt quarterly production
2) ASP above $20/Kg
3) Balance sheet steady at $33m cash - hence, at least $9m profit to pay down debt interest due to end of this quarter.

I believe they can make it and I expect an announcement about LYC production/sales progress already next week. Then, I may be "too positive" here but I cannot see any refinancing issues or "equity rising risk" at the moment. Alongside business dynamics, LYC has got a geopolitical significance for the Japanese industries: we all know what happened in 2010 in the REE ROW market... As long as LYC will keep increasing production and selling them REE, they will be always keen in keeping the LYC "alive" and running. Furthermore, considering the failure of the last LYC capital rise, I am sure, LYC management acknowledges the fact that any other equity risings at these sp levels would simply fail.