Perfect environment for release of the Dec quarter, page-12

Dear Cafa,
Thanks for your last question which I will answer, but let me take you to why I have come to my conclusion in my last view posts:
- The focus of Amanda and her team is to increase production, increase market shares, selling at a premium price , decrease cost of production and present Lynas as a reliable supplier to gain confidence of its clients and most importantly its creditors.
I THINK you would have agreed with me that she has achieved a great success in this area.

March quarter 2015 revealed:

. Lynas did not lose market share with these key customers who have been very supportive. We have worked closely with each customer to balance consumption of customer inventories with deliveries of fresh product. Lynas has started to replenish customer inventories from March and will continue with increased orders for the coming quarter. We emerge from this difficult period with reinforced relationships, particularly with our 5 biggest customers who are each global leaders in their respective market segments. As an example, in the March quarter, we finalized a further contractual agreement with one of these key customers including a firm commitment for a minimum monthly quantity of product delivered. In addition, while the temporary production difficulties in the March quarter resulted in the manufacture of some off specification product, we were able, in cooperation with two customers, to sell all product at acceptable prices. We are very pleased to continue to have a balanced sales portfolio, where all Rare Earth products produced in Kuantan have been tested and accepted at key customers and all production volume is being sold.

In June Quarter 2015:

Supported by the improvements seen in production through this quarter, both in terms of quantity and quality, we have set a new record in sales with over 2,350 tonnes sold this quarter. Welcoming this step change, our customers have responded very positively, in particular, outside China:  NdPr sales to Japan reached over 630tons, setting Lynas above 60% market share, and further strengthening the partnership built over recent years with Japanese industry.  80% of our La and Ce products were sold outside China, thanks in particular to strong demand for our Cerium.
As a result of Lynas demonstrating its stable operation, we have also engaged in very productive discussions with a number of end users, in particular in Europe, who are seeking to secure long term access to rare earth products to meet their fast growing needs.

LOOKING at the previous progress quarter on quarter, any reasonable investor would come to the conclusion of the followings:
-Five biggest customers who are each global leaders in their respective market segments would include Siemens.
-Lynas market share is on the rise especially in Japan.
-New customers from Europe are expected to be announced in this quarter.

NOW, I will answer your question.
Processing the byproducts requires spending in the area of research and marketing. It is unreasonable to embark on this exercise when the business is trying to stabilise production issues, increase production and generate money.
You also do not want to upset the green group before you are strong and have the money to defend yourself.

In June 2015:

We welcomed the recent release by the International Atomic Energy Agency (“IAEA”) of its latest report on the LAMP. The IAEA Report confirmed that "the radiological risks to members of the public and to the environment associated with the operation of Lynas Advanced Material Plant are intrinsically low.”

Now that the company has achieved its programme of increasing production,cost cutting, increasing market share, refinancing its debts and winning all the legal challenges, one would expect the processing of the byproducts and selling them to be on the announcement , if not already in the process.

I am fully aware of the different types of posters on the forum.
-The shorters who are not here for the sake of the debate but rather manipulating everything we write to serve their agenda.
-The moderators who are trying to keep everyone in line with the code of conducts.
-Lynas holders who are defending the company. Those with long term views and those with short term views and those with mixed strategies.

It would be nice to step forward and declare who you are or in other words which group you belong to. This will make it much easier to communicate with.

All IMO.

Good luck all


I hope I answered your question.