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Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. Sparty's posts nearly always relate to companies that he either holds, has held or intends to hold.

Main ForumLYSCF

  • an 25, 2012 (SmarTrend(R) Spotlight via COMTEX) --

    Lynas Corporation Limited (NASDAQ:LYSCF) is one of today's best performing low-priced stocks, up 6.1% to $1.40 on 1.1x average daily volume. Thus far today, Lynas Corporation Limited has traded 601,000 shares, vs. average volume of 545,000 shares per day. The stock has outperformed the Dow (6.1% to the Dow's 0.4%) and outperformed the S&P 500 (6.1% to the S&P's 0.6%) during today's trading.

    Lynas Corporation Limited has overhead space with shares priced $1.40, or 29.4% below the average consensus analyst price target of $1.98. The stock should find resistance at its 200-day moving average (MA) of $1.74, as well as support at its 50-day MA of $1.18.

    In the past 52 weeks, shares of Lynas Corporation Limited have traded between a low of $0.91 and a high of $2.84 and are now at $1.40, which is 54% above that low price. The 200-day and 50-day moving averages have moved 1.03% lower and 0.73% higher over the past week, respectively.

    Lynas Corporation Limited explores and mines for rare earth minerals such as cerium and neodymium.

    SmarTrend recommended that subscribers consider buying shares of Lynas Corporation Limited on October 12th, 2011 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $1.27. Since that recommendation, shares of Lynas Corporation Limited have risen 3.9%. We continue to monitor LYSCF for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

    Write to Chip Brian at cbrian@mysmartrend.com

  • LYC is currently at 1.23 (17/03/2012). I agree with the $1.98/s valuation.

    There is a significant group in Malaysia that do not want the associated minor amount of radioactive waste brought into their area. They are making a lot of noise and have lawyers.

    LYC have payed a US$50mill bond that they will not create an environmental problem.

    It would have been better if LYC got together with ALK and ARU and created a REO processing plant in Darwin. How good would that be for Australia?

  • Hi Alite I totally agree with you re Australia should have the I.P. and R&D here in Australia. As a long term LYC investor I am still puzzled as to the Malaysian decision. The Malaysian's have shown themselves to be easily swayed by emotion and have completely disregarded the scientific facts.... but having visited Malaysia and stayed there for several months I can't say that I am surprised. Further I think that it is NOT improbable that China is exerting its influence via the strong Chinese business community in Malaysia. I wrote about this in the "comments"Bloomberg article on Jack Lifton's view that the refining and producing REE products is the pathway to power and will reproduce what I wrote below.

    In the light of the above I wonder if the WTO action is sensible or more of a knee jerk reaction by the USA in response to being out maneuvered by China? In all honesty the USA must have known of China's intentions as China's ex-premier Deng Xiaoping as far back as 1997 declared: "China would be for rare earth metals what the Middle East was to oil". That they identified that a useful rate limiting step for competitors would be to dominate the refining process should have been expected and history seems to support that they acted on this view.

    Lifton's argument that the rate limiting step will be turning the refined elements into products rings true as the world is about to enjoy several new streams of refined rare earth supplies based on very large deposits outside of China.

    Australia, Canada and the USA all have REE resources. In terms of "proven" economic resources per capita Greenland, Australia, Canada, USA are all quite well endowed. China is amongst the poorest in terms of resources per capita. Greenland (population: 65,000) is by far the best endowed with the world's largest "proven" REE deposit.

    However the refiners club is quite small but this is about to change:

    Lynas has one of the world's richest REE deposits at its Mt Weld, Western Australia deposit and is currently producing REE concentrate ready for refining. Initial output from the Malaysian LAMP facility will be around 11,000 tons per year and that will be increased to 40,000 tons per year within a year or so. That would make Lynas the world's swing producer of refined rare earths in early 2013. Could that have provided a motive for Malaysia's China oriented business people to attempt to stymy the LAMP.

    Closely following Lynas, Molycorp will be refining similar amounts of light REE and Australia's Alkane Resources (ALK) who own the very rich heavy rare earth Dubbo Zirconium project (DZP) in NSW, Australia has already demonstrated successful extraction of heavy rare earths and should be able to supply much of the world's, ex-China, needs for H-REE by 2014/15. The DZP has a 100 year mine life based on its' JORC resource.

    The above is just a hint of the new resources and supplies that are coming on stream. Stage 2 of the race will be the refining of the rare earth elements and stage 3, turning the refined metals into products, is where the real added value will occur.

    So in my opinion Lifton's advice is spot on target . We, the countries with the large economic reserves, should be seeking wealth and power via the ability to manufacture REE dependent products as the supply issues of both the resources and the refined elements is about to be resolved. Canada has already embarked on this and Australia might be able to join in if our Govt. got interested.

    I have held LYC and ALK for several years.

    More at www.australianrareearths.com

  • The Australian Federal Government has an unparaleled opportunity to create a new primary industry that adds wealth to the country.

    Set up a REO processing plant near Darwin and we will, for the first time, actually produce something instead of sending out ore.

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