Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Avoid Lynas, At Least For Now

Overview

Commodity stocks have been lousy performers of late, but Lynas Corp. (OTCPK:LYSDY) has been an exception: shares have nearly quadrupled off of their 2015 lows. While these lows are 99% off the company's 2011 highs investors have seen several compelling reasons to suspect that this is more than just a dead cat bounce:

  1. Lynas was able to refinance its loan, which means its risk of not meeting its loan obligations in the near-term has declined considerably.
  2. Lynas has shown tremendous operational improvements based on several quantifiable metrics such as production growth (especially in its biggest contributors to revenue--praseodymium and neodymiun) and operating cost reductions.
  3. The company recently met a production goal that qualifies it for a 0.5%
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