LYC - Lynas Rare Earths

[purple]

• The $105million bank loan : from a major German private bank Bayerische Hypovereinsbank
• The $115million convertible note placement : with Indus Capital Partners, a U.S.-based hedge fund manager with offices in London, Hong Kong and Tokyo, with over $2.6 billion in assets

Glad to see all this happening; initially I was surprised to see a European bank funding an Australian miner!! But then the hybrid car thingy is accelerating madly :

http://www.dw-world.de/dw/article/0,1564,1427912,00.html

14.12.2004 German Carmakers Catch Hybrid Fever
excerpt :
...Caught off guard by the success of Toyota's hybrid Prius model, German carmakers are racing to catch-up. DaimlerChrysler and GM announced plans on Monday to jointly produce hybrid technology for their cars and trucks...

http://english.people.com.cn/200705/06/eng20070506_372332.html
UPDATED: 11:12, May 06, 2007
Hybrid cars increasingly popular in Germany
excerpt :
Nearly one third of consumers in Germany are planning to buy a hybrid vehicle as their second car, a consumer survey released on Saturday showed.

Now for something tantalizingly interesting :

http://www.ubs.com/1/e/media_overview/media_asiapacific/mediareleases.html?newsId=104454
Hong Kong, August 24, 2006, 07:24 AM
UBS Asia Pacific announces winners of its inaugural Stock Picking Competition : Indus Capital Partners and Blue Pool Capital shared the award for Best Stock Pick…

Now, if Indus Capital show their skill in stock picking to win UBS’s 2006 competition (this is not your backyard stock picking over Sunday sausages), and now in 2007 they choose to buy up $115million worth of LYC convertible notes…

You put 2 and 2 together…Indus Capital is indirectly showing which stock they think is going to hit the big time! now, i know that stock picking sometimes includes luck, but great stock pickers don't become beggars quickly...

 

[BIG BWACULL]

Announcement out today Holding well on a bad day
Lynas Signs US$200 Million Rare Earths Supply Contract

Key Points:
• Second customer supply contract signed for Rare Earths project
• Contract value in excess of US$200 million, over five years
• Minimum floor price in contract, with no maximum ceiling price
• Important contract in the growing Rare Earths magnet market
Lynas Corporation Limited (“Lynas”) (ASX code LYC) is pleased to announce the signing of the
company’s second supply contract with a significant Rare Earths customer for the supply of
Mt Weld Rare Earths to be produced from the company’s Malaysian processing plant.
The contract is a long term five year contract with a value in excess of US$200 million over five
years based on current prices. The contracted sales cover neodymium and praseodymium which
are key elements for the Rare Earths magnet industry. The pricing structure of the contract is
related to the market price; however it includes a minimum floor price, without a maximum ceiling
price, for the product sales over the term of the contract.
Lynas’ Executive Chairman, Nicholas Curtis, believes that the signing of the contract is another
key milestone for the company and the Rare Earths project:
“The Rare Earths magnet market is growing very strongly at fifteen percent per annum which is
forecast to continue for the next five years. This is an important market for the company and it
gives certainty to the company’s cash flows. The Board is delighted the company has signed a
long term supply agreement in this market”, Mr Curtis said.
The company continues to be actively engaged with additional potential customers in Europe,
Japan and the USA.

 

[BIG BWACULL]

Lynas is in a trading halt WHAT THE Hopefully its some good news any ideas out there

 

[sting]

This has to be something BIG... this mob rarely bother about trading halts.... cant be another contract unless a big one as they have in the past just made the ann.........

MAYBE A TAKOVER OFFER...... who agree's

this could not have come at a worse time im off overseas tomorrow now will have to get up during the nite over there to check this out.

 

[nioka]

Lynas is in a trading halt WHAT THE Hopefully its some good news any ideas out there

Not a clue but there are more buyers lining up at a higher price than the last closing price so the sentiment is positive but then again most of my stocks are up today so far and none are down at this stage. I'll see if I can find out anything new.

 

[rob scott]

is it possible that there could be problems with the proposed financing- was the propossed financing finalised or is there problems with hedge funds ?
i cant think of any other reason for a trading halt except an emergency with money-i hope i am very wrong

 

[DonAqua]

is it possible that there could be problems with the proposed financing- was the propossed financing finalised or is there problems with hedge funds ?
i cant think of any other reason for a trading halt except an emergency with money-i hope i am very wrong

Maybe the reason is following:
Lynas signs US$200m Rare Earths supply contract

Seen on www.goldseiten.de with reference to a story published be www.minebox.com

Lynas Corporation Limited has signed its second supply contract with a significant Rare Earths customer for the supply of Mt Weld Rare Earths to be produced from the company’s Malaysian processing plant.

The contract is a long-term five-year contract with a value in excess of US$200mover five years, based on current prices.

The contracted sales cover neodymium and praseodymium, which are key elements for the Rare Earths magnet industry. The pricing structure of the contract is related to the market price, however it includes a minimum floor price, without a maximum ceiling price, for the product sales over the term of the contract.

Lynas’ Executive Chairman, Nicholas Curtis said he believes the signing of the contract to be a key milestone for the company and the Rare Earths project.

“The Rare Earths magnet market is growing very strongly at fifteen percent per annum, which is forecast to continue for the next five years,” Mr Curtis said. “This is an important market for the company and it gives certainty to the company’s cash flows.”

“The Board is delighted the company has signed a long-term supply agreement in this market,” Mr Curtis said.

Lynas Corporation is actively engaged with additional potential customers throughout Europe, Japan and the USA.

- 02 Aug 2007

-------------- Good news, I suppose

 

[rooster6]

Maybe the reason is following:
Lynas signs US$200m Rare Earths supply contract

Seen on www.goldseiten.de with reference to a story published be www.minebox.com

Lynas Corporation Limited has signed its second supply contract with a significant Rare Earths customer for the supply of Mt Weld Rare Earths to be produced from the company’s Malaysian processing plant.

The contract is a long-term five-year contract with a value in excess of US$200mover five years, based on current prices.

The contracted sales cover neodymium and praseodymium, which are key elements for the Rare Earths magnet industry. The pricing structure of the contract is related to the market price, however it includes a minimum floor price, without a maximum ceiling price, for the product sales over the term of the contract.

Lynas’ Executive Chairman, Nicholas Curtis said he believes the signing of the contract to be a key milestone for the company and the Rare Earths project.

“The Rare Earths magnet market is growing very strongly at fifteen percent per annum, which is forecast to continue for the next five years,” Mr Curtis said. “This is an important market for the company and it gives certainty to the company’s cash flows.”

“The Board is delighted the company has signed a long-term supply agreement in this market,” Mr Curtis said.

Lynas Corporation is actively engaged with additional potential customers throughout Europe, Japan and the USA.

- 02 Aug 2007

-------------- Good news, I suppose

That was announced yesterday during trading. That would not be the reason for today's halt. Won't come out until next week most likely.....

 

[DonAqua]

That was announced yesterday during trading. That would not be the reason for today's halt. Won't come out until next week most likely.....

Okay then, so we'll have to wait and guess until they announce it to the public ..

I need more coffee

 

[digdeeper]

New to the board....have been long LYC for 1 year. Very impressed with management's assured performance in putting project elements/funding requirements together along steady development track. But the trading halt on heels of latest supplier deal notice is perplexing...clearly indicative that price sensitive situation has arisen....perhaps a little too suddenly? Has Indus Capital funding fallen out of bed...or has LYC received an approach? A bit too much drama for my liking.
Digdeeper

 

[kim8869]

HI, I'm new to the site, but have been trying to find some info. about the trading halt these past two days. I'm a US investor in Lynas, and have a very difficult time finding info. over here on the company. The stock was down a bit here yesterday in trading Does anyone know anything at all yet?

 

[nioka]

No announcement yet . It was supposed to come out prior to trading commencing??? Why the delay. Buyers still offering better than last closing prices.

 

[fmoraes]

From the Yahoo forum:

LYC - "Suspension from Official Quotation"

Any ideas of what's going on?

This doesn't really sound very good.

Francisco

 

[nioka]

From the Yahoo forum:

LYC - "Suspension from Official Quotation"

Any ideas of what's going on?

This doesn't really sound very good.

Francisco

Suspended, probably because they have not come out with the promised announcement. Just have to keep watching.

 

[Kieran]

It sounds quite worrying but I suppose it's a 'safety mechanism' employed b the ASX to avoid companies dragging out announcements.

As digdeeper said - "A bit too much drama for my liking."

 

[BIG BWACULL]

Lynas in pre open announcement out r:e
Not many sellers ...yet

$60M SHARE PLACEMENT COMPLETES FUNDING PACKAGE
FOR RARE EARTHS PROJECT

The Directors of Lynas Corporation Limited (“Lynas”) (ASX code LYC) are pleased to announce
the completion of a $60 million share placement at $1.15 per share. This completes a
$300 million debt and equity funding package for the Rare Earths project raised over the last
month.
The placement was lead managed by Austock Corporate Finance with Patersons Securities
Limited appointed as co-broker to the issue. Strong demand from both domestic and international
investors resulted in the placement being significantly oversubscribed. Settlement and allotment
of all shares under the placement will occur on 10 August 2007.
Upon completion of the placement, Lynas will have approximately 560 million ordinary shares on
issue. Participants in the placement represent a broad range of global institutional investors
consisting of existing institutional holders and a number of new institutional shareholders that have
been attracted onto the register.
The Directors are also able to announce the final amount to be drawn down from the Indus Capital
Partners, LLC, convertible note facility announced on 6 July 2007, shall be $80 million, leaving a
$35 million standby facility available as additional contingency for the project.
The funding package for the Rare Earths project therefore comprises of the share placement, the
convertible note facility, the US$105 million bank debt facility underwritten by Bayerische
Hypo- und Vereinsbank AG announced by the company on the 27 July 2007 and a cash balance
of $60 million.
Lynas Executive Chairman, Nicholas Curtis said:
“The Directors are very pleased to finalise the complete fund requirements of the Rare Earths
project taking into account prudent gearing ratios for the company whilst minimising dilution for
existing shareholders. This package shall fund the capital and all project costs for the
development of the mine at Mt Weld, the processing plant in Malaysia, contingencies, working
capital requirements and corporate costs.”

 

[nioka]

Lynas in pre open announcement out r:e
Not many sellers ...yet

$60M SHARE PLACEMENT COMPLETES FUNDING PACKAGE
FOR RARE EARTHS PROJECT

Yes. I'm a bit disappointed that they didn't see fit to offer existing shareholders the chance to buy discounted shares as they have done to an institution. Shares allocated at $1.15 and selling for $1.30 at opening makes the $60 million worth almost another $8 million overnight. Work that out on an annual percentage return. I'll let the company know what I think, everyone should do the same and next time we may get a share of the action.

 

[Kieran]

Completely agree Nioka. Westfield did a 2 for 23 entitlement offer to raise capital and (afaik) it worked well, Lynas should have done the same thing.

How does one go about 'letting the company know what I think' ??

 

[nioka]

Completely agree Nioka. Westfield did a 2 for 23 entitlement offer to raise capital and (afaik) it worked well, Lynas should have done the same thing.

How does one go about 'letting the company know what I think' ??

Tele. 61 282597100 Fax 61 282597199 E-mail general@lynascorp.com or mail to 56 Pitt St Sydney, Australia 2000

 

[ta2693]

Yes. I'm a bit disappointed that they didn't see fit to offer existing shareholders the chance to buy discounted shares as they have done to an institution. Shares allocated at $1.15 and selling for $1.30 at opening makes the $60 million worth almost another $8 million overnight. Work that out on an annual percentage return. I'll let the company know what I think, everyone should do the same and next time we may get a share of the action.

We should be happy now. we can get LYC on market below 1.00
That is unbelievable. That is the only one I will hold to the end. even if its price fall from $1 to 1c. The fundamental is so persuasively strong. It is easy to see how panic the market is now.