While Writing on another thread. I said the shut down of Lynas actual may help the stock price because this will be blamed for Poor cash flow Not low REE prices which would be even lower if Lynas had not shut down.
I then Went back and read. what they said in first press release.
"Lynas Corporation Limited (ASX:LYC, OTC:LYSDY) (“Lynas”
has temporarily ceased
production at its Malaysian plant, in response to the Malaysian government’s recent
announcements regarding the escalation of COVID-19 cases and tighter movement
controls in Malaysia. The tighter movement controls in Malaysia are currently scheduled
to end on 31 March 2020.
As a responsible business, Lynas has taken steps to ensure the health and safety of our
people and our communities and we support the government’s actions to control the
outbreak. Accordingly, we have initiated a safe temporary shutdown of our plant into care
and maintenance mode"
Not one word about the government asking them or requiring them to shut down.
Pay attention to thing like "As a responsible business" &"has temporarily ceased
production at its Malaysian plant" &" in response to the Malaysian government’s recent
announcements regarding the escalation of COVID-19 " & "we support the government’s actions to control the
outbreak. " Does any of this sound forced or required? Does this sound like it was any bodies decision but Lynas's?
Now maybe they were just being good cooperate citizens of Malaysia. If so why did they not not shut down when restrictions started?
"As part of the safe temporary shutdown, we have retained some work-in-progress inventory that will allow us to ramp up quickly upon restart. " this indicates to me that this shut down was planned and orderly. Go back and read about the last two shut downs one was bad one was orderly.
Could there be another reason? Remember that that Lynas has good customers that would give them incite into future purchase. Before this shut down NdPr and ND started a fall that is still happening to day. Pr dropped the day after. Did Lynas voluntarily shut down to hide the fact prices were below the point that any positive cash flow or profits could be generated? This made them look like a good cooperate citizen.
https://price.metal.com/spots/Rare-Earth/201102250139
JMO but prices have dropped to where Lynas was losing money on shipping product. they shut down because it hurt to stay open. What a good event to be able to blame the virus to hid problems. Go back to Q3 & 4CC question section and listen to what AL says about where they break even. The virus did cause the price fall. The price fall caused Lynas to closed, I think it was their choice.
If any one can find any thing that says this was requested ( not even forced) by government that is credible pleas show it before you say how crazy I am.
(20min delay)