Australian (ASX) Stock Market Forum

LYC - Lynas Rare Earths

Jump to new
drlog said:
So do you have a link to a photo with the 13 people and two fish? :)
Click to expand...

The photo was part of a news item in a malaysian news paper report on the web. I can't find it now. It was a clear photo of a total of 13 people with two fish being held up?
Looks like they have rouinded up a few more but hardly a crowd.:)
 
Lynas Sale of Crown/Coors and Swan to Forge

Vote NO and if you cannot attend the egm send your proxy vote nominating the Australian Shareholders Association.

Below is a copy of just one of the emails I have sent.

To: Lynas <general@lynascorp.com>
Cc: Martin.Ferguson.MP@aph.gov.au; Stephen.Smith.MP@aph.gov.au; Wayne.Swan.MP@aph.gov.au; Bill.Shorten.MP@aph.gov.au; Australian Shareholders Association <info@australianshareholders.com.au>; BFrith@acenet.com.au; jukieoz836@hotmail.com; fm_walsh@optusnet.com.au; mwest@fairfaxmedia.com.au
Sent: Sun, 24 April, 2011 3:32:30 AM
Subject: Lynas Sale of Crown/Coors and Swan, Rare Earths and Pollymetallic and Phosphate Deposits

Dear Gloria Rodgers,

Executive Assistant,

Would you kindly forward the following email onto all of the Directors and our Executive Chairman Nicholas Curtis.

With Thanks

.........................

Dear Sirs,

Valuation of Crown/Coors and Swan

All of the figures and information below should have been in Lynas' Explanatory Memorandum
So, where is the full disclosure?

How are we expected to make an honest evaluation of the Forge proposal if there is an apparent deliberate non-disclosure?
--------------------------------------------------------
The BDA (Behre Dolbear Australia Pty Limited) report only states
4.3 & 4.4 Resources
Rare Earths: resource estimates have been defined but are not further discussed in this review which deals only with the rare metals and phosphate resources.
Why then does one have to look in the Forge announcement on March 16 2011 to find that there is an undisclosed additional resource attached to the Swan deposit and that the Swan deposit also has rare earths?
------------------------------------------------------------

i.e. 13.7 Mt of 6.4% P2O5, 1.51% TReO+Y, 166 ppm Ta2O5 and 3762 ppm Nb2O5 and is, therefore, additional to the phosphate resource.
and 77Mt at 13.6% P2O5 (with 5639 Nb2O5, 0.81% TReO+Y and 162 ppm Ta2O5)
----------------------------------------------------------
The Swan deposit has 77Mt x .81% Reo = 623,000 t
plus an additional 13.7Mt x 1.51% Reo = 206,870 t
and Crown has 37.7 Mt x 1.16% Reo = 437,200
A total of 1,267,070 t Rare Earth Ore in the Crown and Swan Deposits.
Using a calculated basket price for the Crown deposit of $ 183 per Kg and if Swan has similar grades of heavy rare earths it equates to over $231 Billion for Crown and Swan REE’s.
--------------------------------------------------------------
Then there is the Niobium and Tantalum and Phosphate (Mr Robert Duncan inferred resource for the Swan Deposit of 250Mt at 18% Phosphate) and also about 250Mt of iron at about 40%.
Using prices of $125 per Kilogram for Niobium metal and $500 per Kilogram for Tantalum metal
and an assumed value for Phosphate of $100 per ton the following calculated values can be derived:-

Swan Deposit

13.7 Mt Niobium $6.4B (3762ppm); Tantalum $1.1B (166ppm); Phosphate $0.088B (6.4%)
77.0 Mt Niobium $54.3B (5639ppm); Tantalum $6.2B (162ppm); Phosphate $1.05B (13.6%)

Crown Deposit

37.7 Mt Niobium $50.4B (1.07%); Tantalum $4.5B (.024%); Phosphate $0.3B (8%)

This gives a total value for the Swan and Crown Deposits as follows:-

Niobium $111.4B; Tantalum $11.8B Phosphate $1.44B

This inferred resource of Niobium, Tantalum and Phosphate would therefore have an estimated value of $125B using the calculations as shown above.

------------------------------------------------------------------

A major concern is the amount of rare earths, over 1,267,000ton. Correct me if I am wrong but there appears to be more rare earths in the Swan and Crown deposits than there is in Lynas' CLD (Central Lanthanide Deposit).
-----------------------------------------------------------------

Also with the way the proposal is structured Forge is free to conduct exploration, mining, concentration, processing and related activities within each sublease and OWN all minerals recovered by, or for, Forge subject to certain rights of Lynas to take delivery of an intermediate Rare Earths by-products;


Lynas is signing over the rights to all Minerals discovered within the subleased areas.

So the upside to the inferred resources above is anyones guess.

How do you justify this?
--------------------------------------------------------------------
And Lynas is selling all of the above estimated $231B+$125B = $356B + potential discoveries, for a sale price of $20.7 million. In all honesty, how can you justify this master agreement with Forge?
----------------------------------------------------------------------

I call on Nicholas Curtis and all Director to address the concerns detailed above.

I call on the Board of Directors to Rescind the Proposed Sale of Crown/Coors and Swan.
 
no point having so much of raw material, when the only processing plant which is supposed to be situated is refused by the government a operating license by the country 's AELB (Etomic and Energy Licensing Board).

invest carefully.
 
Not accusing anyone here. And I myself admit I was previously a holder of LYC.
But is there not a point where ethical issues come into play when considering an investment in LYC?

So far the only consideration most investors would give to this whole malaysian outcry is the possibility of something going wrong for the company. But at what point do we see LYC as morally, ethically and socially unacceptable?
Is it not wrong to fund a company which is potentially ruining the safety of a community of many others?
 
VSntchr said:
Not accusing anyone here. And I myself admit I was previously a holder of LYC.
But is there not a point where ethical issues come into play when considering an investment in LYC?

So far the only consideration most investors would give to this whole malaysian outcry is the possibility of something going wrong for the company. But at what point do we see LYC as morally, ethically and socially unacceptable?
Is it not wrong to fund a company which is potentially ruining the safety of a community of many others?
Click to expand...

I agree, but the market differs, LYC SP taking a big hit this morning hitting lows of $2.270 already - in the mix of malay protest and forge sale review..

hold tight
 
The SPP shares are looking less of a bargain, but 2.25-30 looks a technical support zone, so hopefully it might bounce around looking for support here.
 
Logique said:
The SPP shares are looking less of a bargain, but 2.25-30 looks a technical support zone, so hopefully it might bounce around looking for support here.
Click to expand...

thats true however allocation date is still days away.. much can change hopefully for better.. but losing 9.4% - at $2.20 is never easy to swallow.. if ur trading short term.. but long term hopefull all is clear for the go ahead in malaysia and the forge sale is squashed..
 
IMG_0544.gif


seems like it will takes longer for the license to issue than expected.
 
I doubt that there is anything to worry about. Good to have these things aired and out of the way before start up time. The radio activity has been stated way out of proportion and is easily manageable. Lucas heights is an atom bomb by comparison. A bigger worry to me is still the sale of the crown deposit. Hopefully this is on the way out with the deferral of the meeting to vote on the sale after ASIC has stepped in to query the deal. I suggest the "no voters" are winning but the battle continues.:2twocents
 
http://www.youtube.com/watch?v=zHB2sAmUpQc&feature=related

well... you must understand how the government works from country to country. In Malaysia, a developing country, it works very different.

And the general election is coming in another +- 12 months time. And that is the district where the current Prime Minister of Malaysia will be contesting .... will he take the risk to go against the voters?? :eek:
 
update:

current SP on par with SPP - not good and not looking cheap at all.

interesting link:

http://biz.thestar.com.my/news/story.asp?file=/2011/4/29/business/8576520&sec=business

"IT is baffling that Perak can even think of accommodating a second rare earth project when the horrors of radiation in Japan are still fresh on the people's minds and there was a major disaster involving a rare earth plant in the state just a decade ago.

Didn't those in power in Perak realise that as even the controversial Gebeng rare earth plant undertaken by Australian miner Lynas Corp has been heavily criticised."

To be honest I dont see how Lynas would be able to succeed in the long run in refining from this plant - after the first plant was shut down due to protest, uranium concerns in japan def not helping the situation.

I am holding Lynas shares and still deciding on my options - I see the SP hitting around $1.90 - well below the SPP.

Also came across this article:

http://www.smh.com.au/business/accusations-of-insider-trading-dog-a-darling-of-the-bright-young-set-20110428-1dyxe.html

It may not be directly related to Lynas or Nocholas Curtis but I am sure this is not something Lynas/Mr Curtis needs at this stage - it reflects poorly on Nicholas Curtis - also being the fact that Lynas is under investigation regarding the Forge deal.

For a company that reported a negative cash flow of $60.36m for the quarter ended 31 December 2010, it does not help that chances of generating any sort of revenue is likely to be pushed back indefinaltey?
 
with all these negative news, i doubt the corporate players and fund managers wld q to buy. these are the guys tht will hv significant impact on the price. they might prefer to adopt a "wait and see" approach. :2twocents
 

Similar threads

bigdog
Bill Shorten: High Flying Fake Or The Worker's Friend
Replies
5
Views
2K
Investoradam
Investoradam
kahuna1
Top of this cycle for ASX 200, cash is king?
3 4 5
Replies
80
Views
15K
kahuna1
kahuna1
N
Favourite Stocks for 2010
Replies
19
Views
11K
Sean K
Sean K
motion
Uranium in for correction, not a rout
Replies
0
Views
8K
motion
motion
MARKETWAVES
'Hedge Fund' Blowout Threatens World Markets
Replies
12
Views
9K
scsl
S
Top