The darkest hour...

I just returned from an extended ski trip where some of the runs went down quicker than the Lynas share price and I must admit I am a bit surprised to return to an environment of doom and gloom…

Here is some great news.  The Malaysian Reserve is reporting today that Japan increased the rating on the Malaysian credit facility to A+ from an A which is a big deal given the significant Malaysian debt and political ties that accompany that debt…

It stands to reason that any disruption of Malaysian rare earths to Japan would be catastrophic and could cause significant damage to the Japanese economy.  This increase in the credit rating serves to illustrate the close relationship and punctuate the dominate role played by Japan…

I am also disappointed to see that some shareholders are losing focus on the long term prospects of this company but the truth is that a year from now we will be cracking, leaching and processing more rare earths than anyone else in this industry and it will all be according to plan…

Sure Kalgoorlie may slip a bit in terms of commissioning and operation but this is to be expected of any industrial project of this kind.  The LAMP itself just about sent Lynas into bankruptcy but Amanda got it done and now faces similar challenges with the exception that now she is well funded…

Bottom line is that it is inconceivable that Malaysia will risk its excellent credit rating by shutting off the rare earth supply to the critical Japanese manufacturing sector.  Japan is in the driver’s seat here and are they are carrying a big stick, this could be the darkest hour before the dawn….  JMHO…

https://themalaysianreserve.com/2022/09/12/japan-rating-agency-upgrades-malaysia-to-a/