LYC 0.34% $5.93 lynas rare earths limited

Lynas-Japan...potentially a new stock issue

  1. 270 Posts.
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    Someone please ask this at the Annual Meeting

    Lynas owes $150 million dollars to JARE and it is due by the end of June 2020. Interest will add approximately $12 million more dollars. There are nineteen months left to pay down $162 million which means Lynas must make $8.5+ million per month in loan repayments, or $25,6 million per quarter to service the JARE loan and pay off by July 1, 2020. Lynas does not make that kind of profit now to do so! 

    It has been said by people in the past that the JARE would then extend the loan. Maybe. BUT, the JARE most likely will not. The JARE holds the lien on ALL of Lynas except for Malawi.

    Why would the JARE extend the loan beyond July 1, 2020 when on July , if the loan has not been paid in full, Lynas would be in default and JAPAN would own Lynas. Your stock would be worth less, actually it would be worthless - because you don’t own Lynas-Japan shares.

    So someone, please ask Amanda whether there’s any consideration being made to paying off the debt to keep Lynas whole. The annual reports I've read say no. Thank you.

 
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