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Australian miner Lynas (LYSDY)is falling more than 8% after Malaysia’s government put new restrictions on a plant due to start producing thousands of tons of the materials within months.
Howard,the Malaysian government brought in a team from the International Atomic Energy Agency to evaluate the radioactive safety of the plant under construction (its about 40% complete).Their findings were published late Wednesday night.In it,they found Lynas was compliant with all international protocols.However,they recommended before plant is allowed to start-up,Lynas has in place a long term waste disposal plan,and sets up a fund to decommission the plant in about 20 years.Additionally,the Malaysian Gov't needs to define what constitutes radioactivity,as what Lynas will bring into Malaysia (Rare Earth Concentrates) contain non-harmful,naturally occuring amounts of Thorium.IAEA stated the plant does NOT pose a health concern to the community,so long as its run properly.I would expect this may delay processing of Rare Earth Concentrate into Rare Earth Oxides by several months.Regardless,Lynas will be operating with a brand new plant at least a year before Molycorp IMHO.Prices for RE's are parabolic as China has complete control of supply,and is retaining an increasingly larger portion of production for themselves.Several Rare Earth ventures will be astonishingly profitable and their share prices will go through the roof.Many will be money holes,spread your bets,do due diligence.Good Luck!!!
At current prices,a basket of Lynas RE is $204/kg.Their initial production is scheduled to be 11 million kg,with funded scale up to 22 million in 2013.Their market cap of 3 billion currently gives them a foward price/earnings ratio of 1.Average S&P P/E is 15,you would think a company with a non-Chinese monopoly on product would be worth several multiples of that.JMHO
At current prices,a basket of Lynas RE is $204/kg.Their initial production is scheduled to be 11 million kg,with funded scale up to 22 million in 2013.Their market cap of 3 billion currently gives them a foward price/earnings ratio of 1.Average S&P P/E is 15,you would think a company with a non-Chinese monopoly on product would be worth several multiples of that.JMHO
I entered the stock earlier in the year at $15.80 just after the Japanese disaster (earthquake) and sold at $20.65 about a week later. Of course, it ran on up to about $27.00 and today I saw it at $18.30. The easiest way for me to invest in the stock is LYSDY which is 10 shares, so others may be seeing the closing quote today at $1.93.
I've wanted a re-entry point and the current price got me interested.
Yahoo Finance is showing their book value at $18.15 though they quote the stock at $1.93. If they are using cross data, the actual book value might be 1/10th of that or $1.81 and their cash on hand is $28.9M and not $289M. The symbol on Yahoo Finance shows as the pink sheets. I can avoid their fee and buy myself using the ADR which is 10 shares. These numbers for cash and book value seem quite high ($289M and $18.15)
so Yahoo must be using a different symbol for the key stats, but still quote the stock as a penny stock.
I entered the stock earlier in the year at $15.80 just after the Japanese disaster (earthquake) and sold at $20.65 about a week later. Of course, it ran on up to about $27.00 and today I saw it at $18.30. The easiest way for me to invest in the stock is LYSDY which is 10 shares, so others may be seeing the closing quote today at $1.93.
I've wanted a re-entry point and the current price got me interested.
Yahoo Finance is showing their book value at $18.15 though they quote the stock at $1.93. If they are using cross data, the actual book value might be 1/10th of that or $1.81 and their cash on hand is $28.9M and not $289M. The symbol on Yahoo Finance shows as the pink sheets. I can avoid their fee and buy myself using the ADR which is 10 shares. These numbers for cash and book value seem quite high ($289M and $18.15)
so Yahoo must be using a different symbol for the key stats, but still quote the stock as a penny stock.
10 to 1 is no longer valid as of about three weeks ago on the ADR,all LYNAS shares sell at par,be it LYC.AX,LYSCF or LYSDY.The only difference now is in the currencies.
I just placed a sample order on my software. It showed $1.93 using LYSDY.
When I first invested in it, I was told by Charles Schwab there were 3 ways I could buy it:
1. on the pink sheets, over the counter and there was a fee of $75 + the commission.
2. through a live broker which was a high cost.
3. online, myself, using the ADR which was 10 shares and the only cost was $8.95.
So, it seems that #3 is still an option, and as you say the 10 share ADR is changed.
I just placed a sample order on my software. It showed $1.93 using LYSDY.
When I first invested in it, I was told by Charles Schwab there were 3 ways I could buy it:
1. on the pink sheets, over the counter and there was a fee of $75 + the commission.
2. through a live broker which was a high cost.
3. online, myself, using the ADR which was 10 shares and the only cost was $8.95.
So, it seems that #3 is still an option, and as you say the 10 share ADR is changed.
The $75 fee is probably a foriegn transaction for the purchase of LYSCF,which is a Lynas listing on the Toronto exchange.LYSDY will do the trick in the good ol' USA.
Here in Kuantan people are going around town wearing 'Stop Lynas' T-shirts. They had a big demonstration in my neighborhood park last weekend also. I think that the stock price dropped when the Malaysian government put more onus on Lynas to prove that radiation will not be an issue.
Here in Kuantan people are going around town wearing 'Stop Lynas' T-shirts. They had a big demonstration in my neighborhood park last weekend also. I think that the stock price dropped when the Malaysian government put more onus on Lynas to prove that radiation will not be an issue.
Long term waste storage and ultimate disposal of the very mildly radioactive tailings,and a decommisssioning plan are the main issue facing LYNAS in the IAEA report.LYNAS owes this to the community,as it will make BOATLOADS of money from this plant.
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