lynas delays could mean equity raise

http://afr.com/Blogs/Opinion_Street%20Talk#2ff64c2a-3a82-11e1-8f0f-1fc23dea5c73

Lynas delays could mean equity raise

The new year has only just begun but already fingers are pointing at likely equity raising candidates in the resources sector.

Lynas Corporation is one name that has been raised, based on the delays it is experiencing with commissioning its rare earths refinery in Malaysia.

Investec Securites agrees Lynas is likely to need equity, noting that the company had $122 million in cash at the end of September and an estimated remaining budget of $144?million on the refinery. Lynas has a $125 million working capital facility in place, but it is thought that it cannot draw down on it until Malaysia grants pre-operational approval.