Next Lynas CEO Faces Key Question over New Processing Plant

Dow Jones
Sep 07

0605 GMT - The next permanent CEO of Lynas Rare Earths will face a major strategic question over Kalgoorlie, says Macquarie. The miner's processing facility there was built with surplus capacity to mitigate Malaysian licensing risk, which has subsequently eased, Macquarie says. "Prioritizing lower cost Malaysian C&R [cracking and leaching] could see Kalgoorlie operate at less than 60%" of its roughly 9,000-metric-ton annual neodymium-praseodymium capacity over the medium term, says the bank. Lower utilization could trigger an impairment test, says Macquarie. It could also provide headroom for future growth, including supporting sales to third-party separation facilities, it says. Macquarie has an outperform rating and target price of 20.00 Australian dollars a share on Lynas. Shares are up 1.6% at A$15.56.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10