"The chase for yield will come back to reits" I agree. At some point the broad markets will correct, yield will be what investors seek.
Sentiment: Strong Buy
2 July 2014
Lynas Corporation (ASX:LYC, OTC:LYSDY) announces that it is implementing a number of
initiatives to streamline its operations thereby improving organisational efficiency and reducing
overall costs. The first is a simplification of the Company’s structure by co-locating management
personnel and resources with production and sales facilities in Western Australia and Malaysia.
This will result in the Company’s Head Office relocating from Sydney to Kuala Lumpur. Lynas will
remain listed on the Australian Securities Exchange.
“As I approach the end of my first month as CEO of Lynas, I am very focused on addressing those
areas of our business where we have been underperforming. I have reviewed the business with
the team and we have identified opportunities to improve cost, production and financial
performance,” said Amanda Lacaze, Lynas Chief Executive Officer.
“This streamlining of office locations is the first in a series of initiatives aimed at simplifying our
approach and focusing on the highest value drivers in our business.”
Other initiatives to deliver costs savings include reducing workforce numbers (mostly by reducing
contractor positions), improving asset utilisation, renegotiating supplier contracts and seeking
improvements in procurement practices.
“We are pleased to report that demand for Rare Earth Oxide (REO) products remains buoyant
and that the Company has achieved further increases in production and sales of REO products
during the June 2014 quarter,” said Ms Lacaze.
The company is maintaining a heavy focus on the ramp up of production at the Lynas Advanced
Materials Plant (LAMP) in Malaysia. Over the past quarter further bottlenecks have been
encountered which have affected production outcomes. These have been managed and each of
the major stages of the Phase 1 plant – Cracking & Leaching, Solvent Extraction and Product
Finishing – has individually been operated at target capacity during the quarter.
You can do your own analyisis Walter. I read in their Q that average selling price is $22.63/kg REO up 5% from last Q. March production was 575 tonnes, expected April production is 700 tonnes, this is very good. 11000/tpa (phase one run rate) would be 900 tonnes per month. They state at current prices and sales rate of 750 tonnes, they will be cash neutral.
Their will be raising cash, how they do this we will find out on Friday. I fully expect they will be granted the POL in the next 4-5 months. With 11000/tpa run rate, new cash and POL and stabilized REE prices, I'm very confident the company will be well in by the end of year.
Sentiment: Strong Buy
I have to agree. At this stage, their ability to sell what they produce is critical. Someone with strong marketing skills as CEO is a step in the right direction. The market did not react significantly to this news.
I'm in at $3.98 as well. I do think rates will go back up actually but it shouldn't hurt the performance of Amour.
We know you expect your posts written with capital letters and sentences that end with 4 exclaimation points is supposed to scare people. Maybe you do the same with your private notes to Walter. Walter, are you scared?
It appears recent buyers have gained around 50%. You suppose these buyers are fools who buy with reckless abandon then.
Sentiment: Strong Buy
Interesting that Molycorp ASP was $6.88/kg less than Lynas. Terrible quarter.
MCP: "ASP for the quarter was $15.75/kg."
Lynas: "ASP increased by 5% to US$22.63/kg"
Sentiment: Strong Buy
Effective today, Amanda Lacaze has been appointed Executive Director and Chief Executive Officer of the Company following the resignation of Eric Noyrez. Ms Lacaze has been a non-executive Director of Lynas since 1 January 2014.
Looking back, here is a few of your quotes, particularly about the CR:
"IF you believe that raising money will be easy and not cause major dilution then I would like you to explain how."
An oversubscribed CR would make one think it was not that difficult. Successful 40m raised.
"The only way that I can see for Lynas to raise money is issue Preferred Stock that has a high dividend."
Obviously, they had options, and your insight does not go far.
Moly closed $2.50. I think it's good buy. Increased China taxation on rare earths could stimulate prices. Still believe Lynas is cheaper and will do much better in price appreciation.
Lynas just completed a cash raising and repaired their balance sheet. It removes bankruptcy in the near term. You should read the Lynas presentation on the their website for details. They should announce in the June Q cash flow neutral and 11tpa. Those are two huge reasons why the PPS should go up.
REE prices have not done much in past several weeks, they may go up if any china intervention such as stockpiling or the taxation increase were to happen. Demand needs to pick for any sustained higher price as the same for LYC shares.
Sentiment: Strong Buy
"China will only need to ship a few K ton’s to Keep La very low. They do not want to see these companies succeed. They will ship just enough to keep prices low."
Would like you to show facts to explain above quotes. China is supposedly is shipping just enough to keep prices low?? You would think that would ruin chinese ree companies too! They own the market, if anything China is trying to find ways of elevating prices.
Prices are low due to lack of demand and oversupply that has been
exaggerated by illegal mining.
ET Now: US markets have been hitting record highs. Do you think that there is still some more steam left in US equities and if yes, which sectors do you like in US equities?
Marc Faber : In my view, there is only one sector that is particularly attractive and that is the mining sector. Gold and silver mining stocks are very depressed relative to the rates of the market and in absolute terms, in terms of valuations. So that sector is quite attractive.
I also think that coal shares have been oversold and they are now at a reasonably good value, but other than that, I do not see any particular value from a long-term perspective.
Now if you tell me that the market can go up another 10%, that may be the case, but it does not make for good value. Therefore if I look at the total return that I can expect from US shares over the next 5 to 10 years, it will be very disappointing. I would rather buy emerging market shares, which in terms of valuations are reasonably priced.
In the case of India, profit margins are at a historic low. So if there is an improvement in the economy and in the macroeconomic environment, corporate profit margins could expand.
Interest rates in India have a chance to come down at some point, which would be beneficial for corporate profits. So in general, I would rather invest in emerging economies than in the US from a long-term perspective. Now, as I said, if you tell me that the US market can go up another 10%, possibly it can then also drop 30%. - in ET Now July 2014
Euro banks are up on good euro zone PMI data for today. Beyond that, the stock will probably rise ahead of earnings on the 31st.
"Though of course, for me the period that's most of interest is from about 2 years ago, when I first decided to short this stock because it looks like such a likely fraud"
Likey fraud?? Would like to see some facts that proves this company is an actual fraud. Because it isn't a proven fraud, share performance really is correlated to the price of silver, which has fallen in the same time period your interested in.
"1 page on 99% REE oxide prices which Lynas cannot produce." This statement in itself is both misleading and not true at all.
By Charles Penty Apr 29, 2014 3:51 AM ET
Banco Santander SA (SAN), Spain’s biggest bank, reported first-quarter profit that beat estimates on increased U.K. income and announced a 4.7 billion-euro ($6.5 billion) bid to buy out its Brazil unit.
Net income rose to 1.3 billion euros from 1.21 billion euros in the same period a year earlier, the Santander, Spain-based bank said in a filing to regulators today. That was more than the 1.23 billion-euro average estimate in a Bloomberg survey of 11 analysts. In a separate filing, the bank offered to buy the 25 percent of its Brazilian unit that it doesn’t already own with new stock paying a 20 percent premium.
A buoyant economy and lower funding costs are driving revenue at Santander’s U.K. unit while faltering growth in Brazil has put pressure on profits from South America. As Spain climbs out of a six-year economic slump set off by a property crash, Chairman Emilio Botin told shareholders last month that Santander’s domestic business will help lead the bank back to pre-crisis profit levels of about 9 billion euros in 2016.
“The results are mildly positive because of the improved top-line performance,” said Javier Bernat, an analyst at Beka Finance SV in Madrid, who rates the bank hold. “It’s a first sign of improved profitability.”
Shares rose 0.6 percent to 7.09 euros at 9.09 a.m. in Madrid, extending gains this year to 9.1 percent and valuing the bank at 82 billion euros.
Santander would offer up to 665 million shares for the Brazil unit stake, an amount equivalent to about 5.8 percent of current capital, the bank said. It said the transaction would conclude in October this year.
Net interest income, the difference between what a bank earns from lending and pays for funding, rose to 6.99 billion euros in the first quarter from 6.93 billion euros in the fourth quarter as net lending rose 1.4 percent. The ratio of non-performing loans to total credit was 5.5 percent in March from 5.6 percent in December, the first time