Rare Earths Rare Opportunity

Rare Earths Rare Opportunity

Lynas (LYC) mines rare earths in WA at its World Class, long life deposit (still 25 years worth)  and  then sends it over to Malaysia for further processing. The Mt Weld deposit is classed as an asset of strategic importance in a market that is dominated by the Chinese.  Rare Earths are used in all sorts of applications such as batteries, aerospace, electronics, optical and they are also needed in Electric Vehicles. I am very bullish on the outlook for this commodity.

A few months ago it was full steam ahead for rare earth miner and processor  Lynas.  The company steered by CEO Amanda Lacaze was looking the goods; debt levels had plunged and the price of rare earths had gone up. But back in May this year Mahatihir Mohamad got elected as the new Malaysian PM which was when things got a little rocky for Lynas and their processing plant.

The 92 year old Mahatihir is currently reviewing all foreign investment in the country and looking at the deals made that led to the investment in the first place. Also a politician that had it in for Lynas because she wrongly believed that the company emits radiation was put in charge of an inquiry in to their operations. To cut a long story short since May the stock dropped around 47% on the back of fears the Malaysian government would shut the plant down.

The good news for Lynas is the company is run by a very smart CEO and she is  handling the situation perfectly. That politician who had the vendetta against the company is now out of the picture and so we just wait for the review. Lacaze runs a tight ship and if she says the company is in complete compliance then I believe her.

Amanda brought Lynas back from the brink. She once wondered how the company could even put coffee in the lunch rooms. She is the  real deal.

So there we have it; a great company with some political risk.

That risk is  offering investors the Rare opportunity to buy in low.

Lynas is a BUY- last sale $1.86.

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