LYC - Lynas Rare Earths

[rcw1]

Good afternoon
Hoping it breaks on through to that other side of 8 bucks. Slowly, steady freddy goes it... then ... bang wallop smashing on through that barrier would be really nice and considerate of it....

Anyways ; have a great weekend everybody.

Kind regards
rcw1

 

[rcw1]

What's been lifting the Lynas share price?​

Less than two months ago, the Lynas share price was sitting near two-year lows.
However, a number of brokers said that at those levels, the ASX rare earths miner was undervalued.

In early August, Bell Potter maintained its buy rating on the stock with an $8.50 price target. This was more than 40% above the share price at the time, with the broker optimistic about the outlook for the rare earths market. And investors have continued to support the rare earths miner since Lynas released its full-year results (FY 2024) on 28 August.

That came despite a big retrace in some of the company's core metrics.

Revenue of $463.3 million, for instance, was down 41.6% from FY 2023, while net profit after tax (NPAT) of $84.5 million was down 72.8% year on year.

Profits and revenue came under pressure amid what were said to be "stubbornly low" rare earths market prices over the 12 months. And demand from China remained subdued.

With China recently upping its stimulus measures to boost its sluggish economic growth, the Lynas share price may be getting a lift from expectations of stronger demand in the year ahead.

Having received a variation for its Malaysian operating licence in FY 2024, Lynas is now also able to continue cracking and leaching in Malaysia.

And the miner's Kalgoorlie Rare Earths Processing Facility, in Western Australia, achieved first production over the year, which should bode well for FY 2025.

Addressing the ups and downs in rare earths prices during the results announcement, Lynas CEO Amanda Lacaze said, "Lynas has over a decade of experience as a supplier of separated rare earths and this means we are well prepared to weather market price volatility."

The Lynas share price is up 13% over 12 months.

Aforementioned article written by Bernd Struben for the Motley Fool on 26 September 2024.


rcw1: Most of the article was common knowledge for avid LYC followers, but these two lines did remind rcw1 of the actual Chinese impact on REE market, regardless...

With China recently upping its stimulus measures to boost its sluggish economic growth, the Lynas share price may be getting a lift from expectations of stronger demand in the year ahead.

China has banned the export of rare earth extraction and separation technologies protecting its market dominance and has previously threatened to cut off supply. Very soon the heavy REE monopoly will soon be a duopoly ... then the fun will commence across all markets particularly those requiring military grade REE.

Time will confirm or deny this.

rcw1 in boots and all.

Have a very nice Sunday.


Kind regards
rcw1

 

[Rosscoe62]

A very good sign rcw1 …

Yes, LYC like many resource stocks is breaking out with plenty of momentum. The resources/materials are on a tear as many have stated on other threads. Looking very good mid term.

Now over the $8 mark and sprinting,

Held

 

[rcw1]

Good morning

LYC quarterly published... see attached.
Reported declining sales and revenue amid a drop-off in prices for its rare earth materials.
Sales revenue fell to $120.5 million in the September quarter, compared to $128.1 million in last year’s same quarter.

“Rare earths prices continued at low levels during Q1 FY25 … As foreshadowed when we released our FY24 annual results, production levels were managed in line with market demand,” the company said.

Construction of Mt Weld Expansion Project Stage 2 (Balance of Plant) is progressing as planned, with good progress on the grinding and flotation circuits. Stage 2 is forecast to be complete by the end of FY25 and will be progressively commissioned.

The ramp up of the new Kalgoorlie Rare Earths Processing Facility continued in the September quarter, in line with increased production at Mt Weld and Lynas Malaysia and market demand. Lynas Malaysia processed the first batch of MREC from Kalgoorlie during the quarter, and activity will continue to ramp-up in the December 2024 quarter (Q2 FY25).

United States
As previously advised, a permitting issue has arisen related to wastewater management which affects the Seadrift site. The earthworks which were previously planned to commence in 2024 are on hold while the permitting issue is considered.


$A Millions:

AGM will be held on 27 November 2024 at 10am Sydney time at The Mint, 10 Macquarie St, Sydney. Shareholders will also be able to attend the meeting via a virtual platform. The Notice of Meeting is available at Lynas’ website www.lynasrareearths.com or at our share registry’s website www.boardroomlimited.com.au/agm/lynas.

Chart update:

Not holding
Have traded

Have a great day, today.

Kind regards
rcw1

 

[rcw1]

Good afternoon

What analysts are saying:

Lynas Cut to Neutral at Goldman; PT A$7.30
Lynas Cut to Hold at Canaccord; PT A$7.50

Kind regards
rcw1

 

[finicky]

Australia’s first rare earths processing plant opens​

Australia's first rare earths processing plant opens

Lynas Rare Earths has officially opened its state-of-the-art rare earths processing facility in Kalgoorlie, Western Australia.

www.australianmining.com.au

 

[rcw1]

Good evening
Chart update:
3-minute chart

Daily Chart

 

[rcw1]

Chart update:
3 minute chart

 

[rcw1]

Good afternoon

Snapshot of operations in 2019 and present day, cited within CEO AGM Presentation 27/11/24 (quite impressive set up really, so far ahead of competitors, except for China).

Chart update:

Kind regards
rcw1

 

[Sean K]

Good afternoon

Snapshot of operations in 2019 and present day, cited within CEO AGM Presentation 27/11/24 (quite impressive set up really, so far ahead of competitors, except for China).

View attachment 188989
Chart update:
View attachment 188988

Kind regards
rcw1

Any idea how closely rare earths companies are tracking the NdPr price?

I've got a pretty big feeling China are playing with it a bit.

I've got my toe in the water with MEI and wondering what's holding it back.

 

[rcw1]

Good evening @Sean K

Any idea how closely rare earths companies are tracking the NdPr price?

A strong benchmark for production levels and what quantity syphoned off into market.

I've got a pretty big feeling China are playing with it a bit.

100% and some bloke, certainly an issue for Western governments.

I've got my toe in the water with MEI and wondering what's holding it back.

Not entirely sure about MEI not one of rcw1's trading stocks ... yet ... and don't know much about it

View attachment 189019

Not real flash but seen worse ....

Have a great week.

Kind regards
rcw1