Actually the entire rare earth space is all about CHINA. It's chinese economic slowdown that has most metal producers treading the lows. "Meanwhile MCP has their alkaline plant fully operational. I think we will hear in April or May that current costs are around $10.00 and they have a clear path to $5.00 or $6.00." Wow, you are impressed with MCP huh? 5% up from it's 52 wk low and you're pumping it again.
Long term the only way to go IMO. I think SVM is held down because of the copper and industrial metals rout that is happening at the moment. I don't think China is going to let this go on for long, I expect they will make a policy change in the comming months. In the mean time I am also doing the same buying both physical and SVM.
I would wait until the FOMC meeting next week and also the annual report at the end of the month. The stock broke the 2.18 low and a new low form today so I would wait at least to end of the month.
I think your missing the reality of what plagues most mining companies, the price of the product they produce. It's not management, it's not Malaysia, it's always been about the prices. As a long term holder, I see Lynas has tremendous potential and shares extremely cheap.
Actually, this should have been known. I was wondering when Lynas was going to address it's cash and now they have. Notice that shares closed off the lows as market sees 11tpa is close and reported loss will be less in the comming quarters. REE prices have started to show signs of demand comming back with the exception of cerium but Nd/Pr seems to be holding at higher prices and if that continues Lynas will be profitable by the end of the year.
"The directors and management are confident that the group will achieve the target run rate of 11,000tpa rare earth oxide from phase 1 during the June quarter."
Lynas shares closed down 2.5 cents, or 8.48 per cent, at 27 cents after falling to a five-year low of 24.5 cents in earlier trade.
Shares in rare earths miner and processor Lynas Corporation slumped after it warned it would need a cash injection in the next 12 months to remain viable. The company made the announcement as it unveiled a $51.8 million loss for the half year to the end of December, $3 million worse than the loss registered in the previous corresponding period. Lynas spent the six month to the end of December focused on the ramp-up of its rare earths processing plant in Malaysia and its rare earths mining operation at Mt Weld near Laverton.
The company had planned to start production at its Malaysian plant in 2011 when rare earth prices were booming but fierce opposition from local villagers and court battles caused major delays.
Costs associated with the ramp-up of the plant in January has weighed on the company's result with non-cash depreciation and amortisation charges in the half year rising by $8.5 million.
The company said it would need either to raise more cash through an equity issue, take on more debt or restructure its existing debt facilities in the next year.
"The directors and management have assessed each of the alternatives and are in discussions with established financial industry participants regarding each of the alternatives," the company said.
While admitting a level of uncertainty, the company said its directors had reasonable grounds to believe that additional funding could be secured in a timely manner when required.
Lynas said cash and cash equivalents at December 31 comprised $67.2 million of unrestricted cash and $7.5 million of restricted cash, down from $125.7 million and $15.7 million at June 30.
The company said it had completed construction of phase 2 of its processing plant in Malaysia during the six-month period, which would allow it to use its cash reserves to make semi-annual interest payments on its debt facility.
Speaking of conviction, are you holding your short for the entire year? At what price would you cover?
I don't think next earnings will be a surprise to the market. I'm looking forward to the FOMC meeting (3/18, 19) on how silver will behave to the next taper. That may be a time to enter.
I may buy on monday actually, and think this is just a retest of of the the 52 wk low. I hold this as a macro play asianvest. I believe China and Europe's economy will strengthen in the second half of the year. As a result of that, I believe inflation will pick up in the tail end of the year and PM's will rise.
I think it is a risky time time buy but your risk/reward is in favor of the long term holder at this price. But hey, you don't tell us if you are loading your short here do you.
A close at the lows on friday usally means going lower monday. May either form a double bottom or may break the 52 wk low we'll see. Still think silver is going to $25 at year end so a buy anywhere in 2.20's is a good one.
Sentiment: Strong Buy
I suspect the longer the russian ukraine situation goes, the worst it will be for short sellers. Last summer we saw SVM run up to $4 on the Syrian issue. $2.60 pre market.
Of all the red days so far this year SVM is still up 11%. Silver prices technically still have good support at $21 and will grind back to $23. Ultimately, silver will react to rising inflation at the tail end of the year we can easily see silver $25+ Have been buying both physical and SVM. SVM goes below $2.40 I'm buyin.
If you're telling the truth about your short postion since over $6, why wouldn't you have covered and moved on by now? Seems quite piggy. So far you have made nothing this year, and won't acknowlege that. You have made no gains in the last two months, only lossed previous gains. Care to explain?
"you smart me dumb"
"Because SVM has nothing to do with the price of silver"
Your posts are classics. Keep 'em comming..