Lynas entered into a trading halt this morning to raise the fresh funds as it moved quickly to tap into improved investor sentiment towards the company after its quick 10 per cent rally yesterday when the legal threat to the start-up of its Malaysian refinery was removed. But the focus is now firmly on its balance sheet - and its need for cash/Lynas needs to finalise a new working capital facility "imminently", JPMorgan told its clients in a note earlier today.
"We estimate Lynas will have only $14 million in unrestricted cash by year end. Given there is still a five month ramp-up period to come, Lynas is looking to secure a new working capital facility.
"We believe it has been difficult for Lynas to finalise arrangements with financial institutions until a firm start-date for the LAMP was achieved and this underlines the importance of the resolution to the court proceedings, notwithstanding any further appeals."
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