It's nice that Mr Harding and Ms Lacaze have indicated that Lynas suffers from low REO prices. That's been the go-to excuse for years - the Chinese are beating Lynas up on price per kilogram. So if you get into a taxi and the ride to the airport is $A20 and you only want to pay $A15 then the driver delivers you there for $A15? Correct? Perhaps Ms Lacaze sells REOs the same way. Sell based on what the Chinese want to pay not on what you need. Ahh, face she might say, but then face is a two way street and not used as a hammer. (Read "Dealing With China" by Henry Paulson for a primer.)
It's a great idea if Lynas didn't owe $A523Million dollars in 2020! That's a bit over $A100 Million per year or $A8+ Million per month. Seems the Chairman's Address and the CEO's Address came up short on the other aspect of the pricing problem.
Has anyone else noticed that the so-called Chinese price is just high enough to keep Lynas solvent when the debt isn't included? Mr Harding get his piece of the pie, Ms Lacaze gets hers as do all the board members and upper administration. So do the workers and the Malaysian government its fees. If the debt wasn't there then Lynas would be a Harvard Business School study.
But the debt does exist! Though not in the two reports. Resolution 4 seems to have solved the problem until 2020 allowing Lynas, as Mr. Harding states, to "...develop possible options to restructure the business." Nothing further to amplify his comment though.
Mr. Harding, it's time to earn the rewards of the position. I personally expected more from a Chairman; more forward thinking, a plan as to how Lynas will grow its business horizontally, revise pricing to be equitable to Lynas (take into account the debt repayment problem) and a five year strategic plan. Between you and Ms. Lacaze shareholders pay $A 1,306,552 in cash salary, $A 1,967,293 total per year. Both reports we're amateurish, repeats of previous reports, unenlightened and in my opinion, worth little more than whatever time it took to copy and paste together.
The shareholders are paying for leadership and what is being offered is bogus. If you don't want to lead then do me a favor and resign. But Lynas shareholders deserve more than the dribble offered in both these reports. Personally, I think, given the opportunity, I would run the board more effectively but then the board would be more representative of the industry and have no Nick Curtis holdovers on board.
For those who think I am blunt perhaps I am but being nice, warm and fuzzy hasn't worked. Since the meeting the share price has dropped again.
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