Texas...

I have been researching the new Lynas venture in Texas (US) and I am finding it to be quite difficult to obtain any recent recent information.  To that end I poked around in the latest stories I could find on the proposed corroboration  and I highlighted some the stated facts...

One article (which is a year old) briefly describes the proposed new heavy rare earth processing facility which was projected to cost $120m.  This cost will be financed (covered) entirely by the US government. I’m not sure what kind of deal Amanda penned for this project but I am sure it will become very lucrative.  A great example of leveraging IP…

also,

“The project is planned to be built within an existing industrial region on the Texas Gulf Coast. It is expected to begin production in the financial year 2025.”

and…

“Lynas said the new plant, which should be fully operational by 2025, will bolster “future facing industries” as well as American national defense.”

I find it rather interesting that the projected budget for this project starts at $120m and I am willing to bet that there is no firm cap on the upside.  The US government will pay handsomely for a quality product if it is correctly incorporated into the military supply chain…

However, it is the silence and apparent lack of interest that piques my interest.  I’m sure many investors fail to grasp financial significance but more important is the vote of confidence extended by the U.S. government in awarding the $120m Capex-free (to Lynas), contract…

The reason I am bringing the subject today is the approaching quarterly call and it might be a good time for an update.  In my opinion this could be a huge market mover for LYC given that the early stages of the critical material shortage are upon us.  In any event I will be asking for a quick summary including physical progress on the Texas venture if Amanda fails to bring it up...

The bottom line is that Lynas has been growing through some pretty uncertain times.  The sour global economic morass may be resolving itself and climate change is coming to the forefront rather quickly.  These are factors that will help Lynas shine over the next few years and one can find growth within the company just about everywhere…

Amanda remains laser focused dialing in her vision while executing the ambitious business plan.  The US venture is another reminder of tremendous potential Lynas maintains as a company.  Perhaps will reach a point where progress in Texas can be reported but until then information could be scarce.  I guess for $120m, silence can be golden…

https://www.mining-technology.com/news/lynas-heavy-rare-earths-us/