I just returned to society from another sojourn where I was very fortunate to escape the world for a bit. When I first looked at the recent Lynas share price, I was convinced that something catastrophic had occurred within the company and the share price was indicative of trouble ahead. Fortunately I was able replay the QR a couple of days ago and I was surprised to see such a negative reaction to what is essentially an excellent report…
The release was accompanied by news from Mt. Weld which is a 100% Lynas owned RE mine. Surveying and testing have been completed with an increase to the sustainability that would send most junior miners off the charts. Mt. Weld is truly an asset that puts Lynas on solid footing with resources and reserves that will be available well into the future with drilling results confirming this…
Amanda mentioned that the recent investments made in the LAMP served to illustrated the confidence Lynas has in the Malaysian government. She essentially said that the customer projects the demand and “that is why we are confident in increasing our capacity.” Very good news for future market demand…
I think it was Pennie that posted the attendance of Amanda at the US State Dinner held in Washington for influential “friends” of the US. A State Dinner in the US is a good as it gets and invitations are hard to find. This is big news in the US where big deals are made by influential people. It is DD like this that keeps things interesting on HC, thanks Pennie…
The story in Kalgoorlie, for those who follow such things is that a monster wind storm took down some of the HVAC (high voltage) power lines. There is little around in Kalgoorlie to stop the wind but Amanda said the interruption came at an adventitious time when process commissioning was being undertaken and backup power was sufficient to continue operations. It should be noted that this was an anomaly that should be resolved shortly…
I still maintain my original position (10 years) in Lynas and at the current prices I may add a share or two for the grandkids. It can be difficult owning a volatile stock in a questionable market but the value placed on Lynas is unreasonably low (IMO) and represents a buying opportunity…
One of the things I picked up on and find most encouraging is Amanda continuously talking about increasing the efficiencies of the existing and emerging processes. Anytime an engineer (CEO in this case) is trying to make a product more efficient it generally alludes to the fact that the process is working and fine tuning is taking place…
Amanda also referred to the long term shareholder, many of whom participated in the various RE cyclical market turns including the 2020 collapse and rejuvenation of the 2021/2022 market. It’s nice to hear the CEO show concern for the long term shareholders…
Bottom line, what started out to be my initial concerns for the company shaped up to be another solid report with few surprises. This has been an amazing but challenging year in terms of projects, progress and putting money in the bank. Amanda continues to execute the well contrived business plan and for the most part appears to still be having fun...
Although Amanda sounded like she was a bit tired (and who wouldn’t be?), she signaled that she felt 2024 would be a good year for the fruition of projects globally. My take, if Amanda can survive a state dinner while building a global mining giant, things must be going well on a fundamental level. Perhaps the next QR or even a state dinner will continue to show this progress…. JMHO…
LYC Price at posting:
$5.79 Sentiment: Buy Disclosure: Held
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