LYC - Lynas Rare Earths

[sptrawler]

Looks like the Chinese threatening to restrict rare earths to the U.S, has given Lynas a leg up.

https://www.abc.net.au/news/2019-05...na-us-trade-war-retaliate-rare-earth/11162350

 

[Trav.]

LYC came up as a buy in my scan this week. Looking at it's performance over the year you would have to be pretty happy if a holder.

Also looks like some positive news in regards to its operating license in Malaysia

snip from rom qtrly report

and below from marketindex

 

[Chief_Wigam]

Good to see LYC consistently making profit after cost reduction initiatives have worked out well for them. Malaysian government needs them and other good employers like them to help with unemployment there. I have been holding since 2011 so am down quite a lot but holding for the long term

 

[peter2]

I've been a bit disappointed that there's been no upward movement in the price of LYC shares over the past few weeks. In fact they've dropped ~20%. I'm disappointed, as there's been discussion around the world, US and Aust included to develop an independent supply of rare earths metals. Currently China produces most of the rare earths and even threatened to stop exports during the US/China trade "discussions".

 

[tinhat]

I've been a bit disappointed that there's been no upward movement in the price of LYC shares over the past few weeks. In fact they've dropped ~20%. I'm disappointed, as there's been discussion around the world, US and Aust included to develop an independent supply of rare earths metals. Currently China produces most of the rare earths and even threatened to stop exports during the US/China trade "discussions".

I'm a bit disappointed in the free world right now.

 

[bigdog]

The biggest mover today on ASX 200 is Lynas

Talk about the U.S. Army is looking to fund the construction of a rare earths plant for weapons development. They can't go to China can they!!

Also ASX announcement Monday
LYNAS SELECTS KALGOORLIE FOR NEW CRACKING & LEACHING PLANT (uploaded)

450

 

[bigdog]

ASX Announcement today
13/12/2019 10:01:55 AM US Department of Defence Tender

The Age reported
https://www.theage.com.au/business/...kes-on-us-military-moves-20191212-p53jee.html

Rare earths miner Lynas spikes on US military moves

By Darren Gray
December 12, 2019 — 5.52pm

Months after it spurned a $1.5 billion offer from Wesfarmers, shares in rare earths miner Lynas Corp have spiked on reports that the US military intends to pay for much of the construction of a crucial new processing facility.

A US military tender for the construction and operation of a heavy rare earth separation facility in the US is set to close within days, with details of the tender recently reported by Reuters.

The US military is backing the facility because it wants to ensure it retains access to heavy rare earths integral to advanced modern military hardware. Industry experts say Lynas has the capability to be a part of the US plan.

China dominates the production of rare earths but Lynas is a major player in the global production of the valuable minerals, giving the ASX-listed miner a strategic advantage as nations seek to secure supply.

Shares in the ASX-listed Lynas Corp surged in response to reports of the US military tender, jumping 9.7 per cent to close at $2.37.

Rare earths could become a bargaining chip in the long-running US-China trade war, with China threatening to stop the export of rare earths to the US.

"The [US] Department of Defence has requested companies with a capability to construct and operate a heavy rare earths separation and refining operation in the US," said Dylan Kelly, mining analyst at stockbroker Ord Minnett.

"Lynas is the only firm in the world (excluding China) with suitable feedstock, intellectual property and experience to do so," he told The Age and The Sydney Morning Herald.

Rare earths are crucial components of key pieces of military hardware, he noted, and the so-called John McCain Act dictated that the US could not buy certain materials from China.

"Every new Joint Strike Fighter needs 250 kilograms of rare earth materials in it, in order for it to operate. The US defence applications are quite significant, whether it be smart bombs, planes or ships. Modern technology in this day and age requires this material," he said.

Lynas is the only firm in the world (excluding China) with suitable feedstock, intellectual property and experience to do so.

Mr Kelly said Lynas now sells 1200 tonnes of a mixed heavy rare earths carbonate into China each year in a concentrated form. But this year it revealed a plan to set up a joint-venture arrangement to separate the material at a facility in Texas.

The material would be converted into the highest value, heavy rare earth oxides and be sold to customers like the US Department of Defence.

"The US wants to make sure that it's growing its own industry all the way down the value chain. Australia offers an excellent supply of these materials," said Minerals Council of Australia chief executive Tania Constable.

"We have every commodity, rare earth element on the periodic table available in Australia. So we make a natural partner for countries that are seeking diversification of supply," she said.

509

 

[bigdog]

ASX Announcement today
17/12/2019 8:55:39 AM 1 Increase in Malaysian Processing Limit for 2019

Share price down 4%

The regulatory rejection is a setback for the group, which has a complicated history with the Malaysian Government.

582

 

[barney]

Share price down 4%

Rubbery chart at the moment

 

[sptrawler]

I expect a major player will take over in 2020.

 

[jbocker]

I expect a major player will take over in 2020.

Chinese?

 

[sptrawler]

Chinese?

Or U.S, one will make a move to wedge the other. IMO

 

[Chief_Wigam]

UBS price target of $3.00 with US$60/kg long term NdPr

 

[barney]

UBS price target of $3.00 with US$60/kg long term NdPr

Off topic apologies ….
@Chief_Wigam ….. curious on the guitar in your avatar??

On topic ….. Last announcement 19th December 2019

The Company’s project to build a Rare Earths processing plant in Kalgoorlie has been awarded Lead Agency status.

The Kalgoorlie plant is expected to be operational in early 2023. It will undertake first stage processing, i.e. Cracking & Leaching, of Rare Earth concentrate from Lynas’ Mt Weld mine.

The plant is expected to create up to 500 jobs during peak construction and increase Lynas’ workforce in the Goldfields to over 200 people.

Long view of the Chart indicates plenty of potential headroom?

 

[Chief_Wigam]

Yes Gibson Les Paul 2015, good sustain.

I'm a long term holder of LYC and believe in it. I think the Malaysian thing is well factored into the share price and if the Govt wanted to shut the plant down by now, they would have. They need job creation so need Lynas there

 

[bigdog]

https://www.theage.com.au/business/...al-challenge-in-malaysia-20200118-p53so3.html

Lynas faces fresh legal challenge in Malaysia

Lynas Corp faces more market uncertainty on Monday after the rare earths group confirmed a legal challenge has been lodged against the Malaysian government's decision to renew its operating licence.

In a statement released to the ASX after the market closed on Friday, Lynas said it had received documents filed by three individuals commencing judicial review proceedings in the High Court of Malaya in Kuala Lumpur.

The grounds of the legal challenge relate to the process followed by the government in reaching its decision to renew Lynas' licence in August last year despite public concerns over toxic waste from its operations.

Late Ann on friday after close
17/01/2020 5:18:12 PM 1 Litigation in Malaysia (PDF 71.8 KB)

303

 

[martaart077]

Perhaps foreign influences covertly supporting the litigants to disrupt lynas production. Australia not the only country under such influences.

 

[qldfrog]

Perhaps foreign influences covertly supporting the litigants to disrupt lynas production. Australia not the only country under such influences.

Actually would make sense and knowing the power of chinese business interests in Malaysia , it is now obvious it was a crazy choice in the first place to have a factory there...
I should probably buy for a take over hope if the price gets hit enough

 

[bigdog]

I included Lynas in my Tipping Competition for Full CY 2020 tips on the basis of being a potential takeover target and also the US Dept of Defence tender for a heavy rare earths separation plant

Have not bought yet!

 

[sptrawler]

Well this story highlights what we have been saying for years, why the F%$K didn't they build the processing plant here in Australia, in the first place?

https://www.smh.com.au/business/com...-malaysia-sovereign-risk-20200124-p53ufh.html

Why don't they do all the processing here, rather than still sending the product to Malaysia or the U.S for final processing?