Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

94 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

LYC, LYNAS CORPORATION LIMITED
mullokintyre
post Posted: Today, 11:07 AM
  Quote Post


Posts: 1,686
Thanks: 616


In Reply To: blacksheep's post @ Yesterday, 10:10 PM

LYC Board has rejected proposal out of hand.
Now to sit back and see who wins.

Mick



--------------------
sent from my Olivetti Typewriter.
 
blacksheep
post Posted: Yesterday, 10:10 PM
  Quote Post


Posts: 5,629
Thanks: 2110


In Reply To: nipper's post @ Yesterday, 03:15 PM

Your Money business editor James Daggar-Nickson commented:

QUOTE
Surprise. That’s the overwhelming reaction to news of the Wesfarmers bid for Lynas.

Speculation has been rife since Rob Scott took the helm of the WA giant as to what direction he was going to take the company.

That speculation ramped up following the decision pull out of the UK and divest Coles. With a balance sheet in rude health and a history of acquisitions, it seemed Wesfarmers was linked to just about every company in the top 200 except Lynas.

Lynas has had a chequered history, to put it mildly. It mines and produces rare earths which is a misnomer as rare earths are anything but rare. The vast majority of known supply is in China. In 2017 it mined 107,000 metric tons. China controls the market and, as a consequence, the price.

The company has also had ongoing issues with its processing plant in Malaysia which last year faced the possibility of being shut down over environmental concerns. The future of the plant remains uncertain with it needing to gain a licence to continue operating beyond September 2.

The issues around the Lynas’ business had some fund managers suggesting it was not investment grade.

So why is Wesfamers trying to buy it?

Well rare earths, while not rare, are integral to the modern world.

They’re in everything from TVs, mobile phones and batteries to image diagnostic machines and cancer treatment drugs. They are one of the key building blocks of technology and Lynas is the only miner and processor of rare earths of scale outside of China.

And that potentially gives us an insight into what Wesfarmers is doing.

Wesfarmers has traditionally been run like a private equity firm. It invests in a range of businesses sets return expectations for each business and allocates capital accordingly. The period of Coles ownership was the exception as opposed to the rule on both return and scale.

It has historically been agile and very forward-thinking and that is again what we are seeing. Pivoting from retail to technology, or at least the new economy.

At an indicative value of $1.5 billion the proposed acquisition is small for Wesfamers. Realistically they need an $8 billion to $12 billion acquisition to really move the dial in earnings. So don’t expect this to be the end of acquisitions.

Rather, it’s likely the first in a strategy that transitions them into a new economy business.


Tolga Kumova was also interviewed & asked about DD - you can hear his comments in the video - https://www.yourmoney.com.au/business/big-b...ve-into-mining/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Yesterday, 03:15 PM
  Quote Post


Posts: 5,313
Thanks: 1945


In Reply To: blacksheep's post @ Yesterday, 01:25 PM

I hope WES due diligence has included touching base with the relevant state and Federal authorities in Malaysia.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Yesterday, 01:25 PM
  Quote Post


Posts: 5,629
Thanks: 2110


In Reply To: nipper's post @ Yesterday, 08:08 AM

Certainly came out of left field - particularly since there is still some uncertainty re LYC's long running dispute with the Malaysian government. Would imagine a number of current shareholders might be tempted to take the SP rise and run biggrin.gif 21.5mil shares traded so far today. Shorters left scambling to cover - total short positions as at 20 March = 8.05%

From The West

QUOTE
Investors have reacted nervously to Wesfarmers’ surprise $1.5 billion takeover offer for rare earths miner Lynas Corp, marking its shares down as much as 4 per cent.

Wesfarmers is offering a healthy 45 per cent premium for Lynas, a company which is under pressure in Malaysia, where a dispute with a provincial government has cast doubt on the future of its $1 billion processing plant.

A successful takeover would meet Wesfarmers chief executive Rob Scott’s ambitions for the company to target growth in new energy and new technologies, but it would also put the group back into the mining business, just months after it completed the exit from its east coast coal mines.

Investors remain wary about any diversification by Wesfarmers in the wake of its aborted $2 billion push into the UK hardware market via Bunnings.

Nervousness about the Lynas bid was exacerbated by the bidder’s failure to explain the rationale, citing the conditional and indicative nature of its $2.25-a-share cash offer.

Mr Scott said only that Wesfarmers was ideally placed to financially support Lynas’ downstream processing ambitions and “realise the full potential” of the Mt Weld mine near Laverton.

“Wesfarmers also offers highly complementary mining and chemical processing expertise and a track record of working well with diverse governments and other stakeholders,” he said in a statement.

Lynas’ Malaysian plant produces more than 20,000 tonnes a year of rare earths materials, demand for which is rising on the back of the growth in electric vehicles.

Wesfarmers said the offer was contingent on a number of factors, including Lynas’ licences in Malaysia remaining in force.

In December, Lynas’ chief executive Amanda Lacaze said uncertainties surrounding its Malaysian plant had hampered efforts to plan expansion.

As at 10.30am, Lynas shares were 56.5¢ higher at $2.12, while Wesfarmers was off $1.22 at $33.81.

https://thewest.com.au/business/wesfarmers-...-ng-b881147143z
https://www.shortman.com.au/stock?q=lyc
Attached thumbnail(s)
Attached Image



 




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Yesterday, 08:08 AM
  Quote Post


Posts: 5,313
Thanks: 1945


Wesfarmers has made an indicative bid at $2.25 a share, which was a 44.7 per cent premium to Lynas' last close.

The offer is subject to a handful of conditions, including due diligence and entry into a scheme of arrangement.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Mar 14 2019, 01:02 PM
  Quote Post


Posts: 5,629
Thanks: 2110


China becomes world's biggest importer of rare earths – analysts
Reuters
extract
QUOTE
Washington had last year proposed slapping tariffs on rare earth imports from China in a trade spat between the two countries, before reversing its decision.

Myanmar, meanwhile, last year became a vital source of dysprosium, terbium and gadolinium for China's magnet and alloy manufacturers, according to Castilloux, whose numbers are based on customs data and Adamas' own research.

If Beijing ends up banning rare earth imports from Myanmar this year — due to fears the Southeast Asian country is being used to "launder" illegally mined Chinese material — China could temporarily revert to being a net exporter of the seven key rare earths in 2019, Castilloux said.

But rising Chinese imports look set to be a long-term trend, he added. Other than Lynas Corp, a rare earth producer that operates in Malaysia and Australia, "any company that's reached production in recent years has done so by selling rare earth concentrate to China", Castilloux said.

http://www.mining.com/web/china-becomes-wo...arths-analysts/

Total short positions as at 8/3/19 = 8.25%
https://www.shortman.com.au/stock?q=lyc

SP currently up 5.24% @ $1.6575
Attached thumbnail(s)
Attached Image


 




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Mar 4 2019, 02:43 PM
  Quote Post


Posts: 5,629
Thanks: 2110


In Reply To: blacksheep's post @ Feb 28 2019, 09:03 PM

2 x notable short alerts in last two trading days
QUOTE
Fri 1st Mar, 2019 4,604,364 665,681,660 0.69% 8,620,906 53.41%
Thu 28th Feb, 2019 5,388,155 665,681,660 0.80% 10,843,927 49.69%.


Total short positions as at 26/2/19 = 5.68%
https://www.shortman.com.au/stock?q=lyc

SP currently down 3.75% @ $1.6025

Attached thumbnail(s)
Attached Image


 




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 28 2019, 09:03 PM
  Quote Post


Posts: 5,629
Thanks: 2110


In Reply To: blacksheep's post @ Dec 6 2018, 06:27 PM

LYC auditors flagged the issue of the requirement to export ALL WLP residue under "Going Concern" in LYC's HY Dec 2018 report

QUOTE
Emphasis of matter – material uncertainty related to going concern
Without qualifying our conclusion, we draw attention to Note 2.2 to the financial statements which
describes the principal conditions that raise doubt about the consolidated entity’s ability to continue as a
going concern. These conditions indicate the existence of a material uncertainty that may cast significant
doubt about the consolidated entity’s ability to continue as a going concern. Our conclusion is not
modified in respect of this matte


relevant section of 2.2
QUOTE
Based on the above, the Directors consider it appropriate to prepare the financial statements on a going concern basis. However the Directors
also point out that in the event that the Group is unable to resolve the pre-condition currently stipulated for the renewal of Lynas Malaysia’s full
operating stage licence that requires export of all WLP residue before September 2, 2019, there would be material uncertainty as to whether the
group would be able to continue to operate the LAMP in Malaysia in its current form beyond September 2, 2019 and in that instance, whether
the group can continue as a going concern and, therefore whether it would be able to realise its assets and discharge its liabilities in the normal
course of business and at the amounts stated in the financial report.


Hopefully they can find a solution - and quickly!

SP ended the day down 1.95% @ $1.76 - hit a low of $1.62 earlier in the day
Total short positions @ 22/2/19 = 5.78%
https://www.shortman.com.au/stock?q=lyc
Attached thumbnail(s)
Attached Image


 




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
mullokintyre
post Posted: Feb 15 2019, 10:08 AM
  Quote Post


Posts: 1,686
Thanks: 616


In Reply To: blacksheep's post @ Jul 23 2018, 03:37 PM

QUOTE
CLSA rates LYC as a Conviction Buy with a $3.50 target - currently SP is $2.15, up 6.44% currently
from their Quarterly


This was only July last year.
Up 13% today.
Something is up.
Still below my low ball bid of 1.88 back then.
Damn lucky i never got taken out, would have been sitting on some losses for a while.
Mick



--------------------
sent from my Olivetti Typewriter.
 
blacksheep
post Posted: Dec 6 2018, 06:27 PM
  Quote Post


Posts: 5,629
Thanks: 2110


In Reply To: blacksheep's post @ Dec 4 2018, 07:13 PM

QUOTE
"Lynas must remove radioactive residues from Malaysia" - where's it going/who will accept?

AFR article covers in this article

Lynas faces $60 million radioactive waste transport bill

QUOTE
If Lynas decides to return the waste to Australia, which is the preferred solution of its critics in Malaysia, regulatory challenges will begin with cross-border transport.


QUOTE
The Australian Radiation Protection and Nuclear Safety Agency (ARPANSA), the federal agency tasked with radiation safety and nuclear safety, said that once on Australian soil, state regulations on transport kick in.


read more - https://www.afr.com/business/mining/rare-ea...20181206-h18toh



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


94 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING