Look at interest rate on JARE. Now look at market rates for bonds. At this point their bonds would not receive even an A rating, maybe BB, assuming they wanted to isue US$200M of bounds. Why would they do this? Unlikely they would even be able to pay a $0.005 dividend. Far better to invest to expand Q&Q. If anyone is holding hoping for a dividend in the next couple of years they should really take a careful look at the 2018 AR and the 663M shares outstanding. If you think they are not paying a dividend because of the JARE clause you are really missing what Lynas finances look like.
JARE has been a tremendous source of support to Lynas. It is JMO that without JARE they would have gone BK. Why would you want to dump this long standing supporter for someone or something else?
LYC Price at posting:
$1.63 Sentiment: None Disclosure: Held
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