Simple. Panic has been building over this Malaysian delay and is now being released. The fact is that Lynas is actually likely to be delayed until after their election. They are supposed to meet some 2 additional conditions and I bet they have but the Government keeps knocking them back over any excuse just to delay granting the license. All the waiting and no news of any progress has resulted in many investors having enough stress and just getting out of this dud stock which I still hold.
Also, a capital raising may be likely down the track as Lynas is forced to burn through millions each month just waiting for something they were promised years ago would be easy.
Finally, rare earth prices experience a bubble which burst and they have come crashing down ever since with no signs of stopping.
So a resource company involved in consistently crashing commodity, is likely to run out of money waiting which could force them to dilute their shares in order to survive long enough to get a license which may never even come. I am surprised my holdings are worth anything to be honest.
LYC Price at posting:
65.5¢ Sentiment: Hold Disclosure: Held
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