Lynas is going to raise another $200 million Monday by selling lyc shares in Australia at a discount to the current USA share prices for lyscf and lysdy. That explains why lyscf and lysdy shares are down today in the USA. Australian lyc shares were halted two days ago and will be sold at the closing price before the positive news of the granting of the LAMP for operation in Malaysia. The cash infusion will be very positive for Lynas even though further share dilution will occur. Molycorp is facing different kinds of problems now and the share price is falling. Lynas finally has solved its major problem and is on its way to producing rees. Molycorp continues to build out the Phoenix project and it too will be producing more Lrees next year. This may cause more deterioration in Lree prices which will be detrimental to both Lynas and Molycorp. Time will tell. I am not greatly optimistic for the ree space stocks currently.but I am favoring Lynas over Molycorp currently. If GWM can give clarity on the development of the Steen project, it may be a current buy. As time passes without clarity, GWM will also suffer IMO. I invite your opinions.
I think MCP and Lynas are facing the same problem: it is expensive to start a rare earth mine and processing facility. I think that difficulty is much larger for the GWM's and small exploration phase companies. MCP and Lynas have to bring their planned operations to fruition, and then of course the RE market has to absorb the new supply. I think the long term demand for the RE's is going to grow at a VERY high rate and the new supply will be snapped up. Both companies have done a good job at lining up customers.
I favor MCP over Lynas but I think both are going to be successful.