Lets assume a little downside to the whole market it is starting look like it may happen. Lets assume Lynas profits goes up 6 x to $0.04. At same time there is a market correction lowering ASX average Pe to 20, Still 33% above long term average. That Lynas because of sector and still being the major source of oxides outside of China has a PE of 50. What would Lynas SP be? 50 X $0.04 = $2.00. I do not think Lynas would go this low there is a ground effect, it does give a better idea of what might happen. Because of decreases demand during a major correction commodity prices like REE usually decline.
Note if Lynas because of decreased earnings tied to of the depreciations of $1.6B in CAPX Will lose some of the ground effect. Note I am assuming profits increase to $0.04 not going into the red. $6M in profit 1st half of 2025 is very close to negative especially compared to 2nd half 2022 $294M, just 30 months between reports. Also remember in spite of revenue going from $237M 2nd half of 2024 to 242 M 1st half of 2025 UP 2 %, profits went from $33M to $6M down 82% What does Revenue going up a tinny and profits going down that much mean to all of you. Since the only amajor one time item was positive I think there are problems ahead. Why should I not think this?
LYC Price at posting:
$7.16 Sentiment: Sell Disclosure: Not Held
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