Today's chart & trading, page-2124

. Take a look at the refinance it specifically prohibits a dividend till debt is paid. Even if this condition did not exist take a look at he cash flow. There is 691 M shares. even paying 10M in dividends would leave them short of cash. 10M / 671M = would be a dividend of AUD 0.015. That would be a joke. They are now trying to finance the entire 2025 plan out of operating cash. I think this is a great goal. It also means no dividend till 2025 unless REO prices go way up. Probably more than double to day.

I will offer another Idea on share price. At best I think they will announce a profit of 30 ~ 50M next week. 50 M divided by 691 shares is 0.07 EPS for the year. Now Lynas has a very bright future but what do you think the stock price should be when 6 years after starting production 2 years of full production and a major expansion, NEXT, and they are only making 7 cents a share maybe less. For reference they made AUD 53.1M in 2018. What does a decline in profits YOY mean especially after all the NEXT improvements? We will see. All of NEXT was not implemented till Jan 2019 but some were implemented as early as Q3 2018.

I know the low profits are because of events beyond Lynas's control. I am not saying this is there fault. However they are in a commodities market where they are not the major supplier. Regardless of cause this is a negative for the stock. I know people with diverse opinions from Chem to AUS do not feel REO is a commodity but I have posted definitions and compared with commodities like steel, copper, wheat and pork bellies. Non of these people have replied why it is not a commodity. Sorry no it is not, is not good enough for me.