Here are the facts to dwell on as a long term investor
FACT
LYNAS IS A VERTICALLY INTERGRATED COMPANY OF RARE EARTH ELEMENTS
The management have developed a fully intergrated supply chain
The global rare earth industry currently has certain complex issues facing it and needs solutions involving much more than simply having some 200 companies exploring for rare earth deposits.
Lynas Corporation has developed a vertically integrated supply chain connecting exploration to mining/concentration to separation/refining to major international customers of the individual rare earths.
Currently the components of the supply chain are disjointed because the vast majority of the critical separation/refining capability is found primarily in China. As a consequence of the domination by China of the refining stage, manufacturing companies whose products depend on rare earth supply have four choices when sourcing these critical elements:
1.Continue to obtain refined rare earths from China;
2.Manufacture products in China;
3.Design products without or with minimal use of rare earths (impossible in some cases and reduces product performance characteristics in many others); or
4.Attempt to source rare earth materials from one of the very few refineries situated outside of China.
The strategy of Lynas Corporation as a vertically integrated company is to deliver optimal rare earth product mixes within a short time frame to market:
What advantages has Lynas got over other rare earth element companies
Lynas Corporation own and operate it's own mines
Lynas Corporation own and operate it's own rare earth refining/separation facilities in a stable and suitable geographic location
Lynas Corporation has developed relationships with all the top tier major international companies which depend on rare earths for their market leading products.
Lynas Corporation has the ability to customise to company specification all rare earth element needs.
This flexibility is a game changer in the rare earth metals industry
FACT
LYNAS CORPORATION ARE GOING TO GENERATE PROFIT AND DIVIDENDS FOR IT'S SHAREHOLDERS
Lynas Corporation has a sustainable business plan unlike many of the current operators of rare earth companies globally
FACT
LYNAS CORPORATION IS ABLE TO CUSTOMISE ORDERS TO USERS OF RARE EARTH METALS AND BECAUSE OF THAT THE BASKET PRICE OF RARE EARTH METALS ALTHOUGH IMPORTANT IS NOT AS CRUCIAL TO LYNAS CORPORATION AS THE MEDIA MAKES OUT
FACT
LYNAS CORPORATION WILL SURVIVE THE ELECTION IN MALAYSIA
All the doomsayers drawing out negativity on opposition destroying Lynas Corporation is all fluff
FACT
LYNAS CORPORATION HAS ENOUGH MONEY IN THE BANK TO SEE IT THROUGH UNTIL POSITIVE CASH FLOW AND FOR ANY AQUISITIONS THAT WILL ENHANCE THE COMPANY
Lynas Corporation has 170 million dollars in it piggy bank, which will enable it to operate until positive cash flows. Management have also publicly stated that if any business opportunities come along these surplus funds will be put to good use in aquisition
FACT
MANAGEMENT ARE FULLY QUALIFIED TO TAKE THIS COMPANY FORWARD TO BE A WORLD LEADER AS A RARE EARTH METAL SUPPLIER
Lynas Corporation has a wealth of experience in its employment. A lot of the workers have been poached from other world leading rare earth metal companies
THE SHARE PRICE WILL GO UP (imo) - noticed I left off the word fact at the top of this statement
So in the end I say this
Dont say I should have bought Lynas Corporation shares when they were at this level
Dont say I would have bought Lynas Corporation shares when they were at this level
Dont say I could have bought Lynas Corporation shares when they were at this level
INSTEAD
Say I bought Lynas Corporation shares when they were at this level and it's the best investment made for the calender year 2013
As always = the above statements are taken from the internet and also my views. However do your own research and do not rely on biased opinions
LYC Price at posting:
50.0¢ Sentiment: LT Buy Disclosure: Held
(20min delay)