Apr. 24, 2015, 12:47 PM
- China’s decision to scrap export quotas and taxes on rare earth elements may boost stalled demand for the products, Lynas (OTCPK:LYSCF, OTCQX:LYSDY) CEO Amanda Lacaze tells Bloomberg.
- Users have been drawing down on stockpiles while awaiting clarity over China’s policy on the export of the elements, Lacaze says.
- China, which produces ~85% of global supply, announced yesterday it will remove export tariffs on rare earths beginning May 1.
- Lynas, which said March was the first month in the company’s history in which it was cash flow positive, is seeking to restructure its debt before September, the CEO says.
- Relevant tickers: MCP, REE, AVL, GSM, GMO, OSN, REMX
Jun. 17, 2014, 6:18 PM
- Molycorp (MCP) bonds rose to their highest level in more than a month after peer Lynas (LYSCF, LYSDY) sold shares, and "distressed investors looked at Lynas and said if they can raise money, Molycorp can too."
- MCP, which has lost money for nine straight quarters and may run out of cash in another seven months or so if operations don’t improve, may benefit from new investments being made into the rare earth industry, a Loomis Sayles analyst says.
- With fresh capital, investors see MCP’s Mountain Pass facility in California becoming fully operational later this year that would help the company grow.
Mar. 26, 2014, 3:38 PM
- Analysts say rare earth elements will continue to fall this year after China loses a trade dispute over its export controls, as new mines boost output and while demand in high tech products disappoints.
- A price war could break out after the U.S., EU and Japan won their case over export restrictions they said gave Chinese companies an unfair competitive edge in key sectors, says Ryan Castilloux of Adamas Intelligence; China's "only tangible defense becomes competing head-to-head on price with emerging global producers."
- Investors already are concerned about excess supply as Molycorp (MCP -3%) and Lynas (LYSCF -12.5%) boost output at their new mines; MCP aims to boost output to 20K metric tons/year after producing ~1K metric tons in Q4 2013.
- Also: REE -0.6%, AVL -2.4%, GMO -3.7%.
Jul. 31, 2013, 12:53 PM
- A spike in Molycorp (MCP +6.7%) is attributed to an article that says China rare earth prices skyrocketed in the past week.
- Dysprosium oxide jumped 79% in the past week, according to MetalMiner's price index; yttria climbed 47%, terbium rose 34.5%.
May 28, 2013, 8:36 AM
Demand for rare earth oxides has troughed, which could be good news for Molycorp (MCP) after another 12% decline in prices during May, Morgan Stanley says, but additional supply from MCP and Lynas in H2 of this year could put prices back under pressure. The firm keeps its Equal Weight rating on MCP but raises its Q2 EPS estimate to a $0.25 loss from a $0.30 loss. MCP +2% premarket.| May 28, 2013, 8:36 AM
Dec. 11, 2012, 4:00 PM
Molycorp (MCP +5.8%) posts its second straight strong gain, as the picture grows brighter: Large stockpiles of rare earths are finally starting to dwindle, and top competitor Lynas is undergoing regulatory problems with Malaysia's government. How much higher can MCP climb? Oracle's Laurence Balter has a $50 price target, but shares still would be shy of their 2011 summer high near $7.| Dec. 11, 2012, 4:00 PM | 4 Comments
Dec. 10, 2012, 3:19 PMLynas' (LYSCF.PK, LYSDY.PK) plans to ramp up rare earth materials via its new Malaysian plant suffer a setback, as four ministers say it must export waste material in Malaysia or risk having its operating license revoked. The ministers' statement followed reports citing Lynas Malaysia's director as saying the company would not export residue from the plant. MCP +19.8%, AVL +10%, REE +9.5%. | Dec. 10, 2012, 3:19 PM | 7 Comments
Jun. 21, 2012, 12:20 PM
Australian miner Lynas (LYSCF.PK -12%) gives back all of the gains it made following parliamentary approval in Malaysia on Tuesday of a controversial rare earths processing facility. A coalition of groups opposing the plant today vowed "wave after wave" of protests that they won't stop until "the world’s largest radioactive dump" is forced out.| Jun. 21, 2012, 12:20 PM
Jun. 14, 2012, 2:58 PM
With many rare-earth stocks (REMX) near 52-week lows, now may be the time to dig in to sector bargains, Jacob Securities' Luisa Moreno says. Prices for rare-earth elements "are approaching levels which are economic again," so she sees demand starting to pick up and prices stabilizing in H2. It may take time to affect stocks, but she likes MCP, TAS, MTCEF.PK, LYSCF.PK.| Jun. 14, 2012, 2:58 PM | 4 Comments
Jul. 5, 2011, 7:33 AM
On a breathtaking tear all year, rare earth metals prices fall M/M for the first time in June, according to Lynas (LYSCF.PK). "There are whole industries disappearing at the moment" because of high prices, says a producer. China is expected to announce rare earth export quotes for H2 in the coming days.| Jul. 5, 2011, 7:33 AM
Jun. 30, 2011, 10:53 AM
Shares of rare earth companies soar after reports a competitor's large refinery in Malaysia faces problems. The Australian Stock Exchange halted trading yesterday on Lynas Corp. (LYSCF.PK -8.8%) in advance of a news conference outlining its safety issues. Gainers: MCP +6.2%, REE +3.9%, AVL +4.6%.| Jun. 30, 2011, 10:53 AM
May 5, 2011, 2:18 PM
Goldman Sachs analysts predict a glut in rare earth supplies by 2013 as new mines open to take advantage of massive price increases. The bank's view is in direct contrast with rare earth producer Lynas (LYSCF.PK +6.9%) who says the world's major exporter (China) is on the verge of becoming a net importer. MCP -3.7%, AVL -7.0%.| May 5, 2011, 2:18 PM | 3 Comments
Mar. 8, 2011, 10:15 AM
Feb. 15, 2011, 1:40 PMDocuments obtained by Bloomberg show Australia blocked a 2009 bid by China to purchase 52% of strapped rare earth miner Lynas (LYSCF.PK) over concern it could threaten supplies to non-Chinese users. Lynas subsequently raised cash elsewhere, and its value has risen 25X since the 2009 bottom. | Feb. 15, 2011, 1:40 PM | 3 Comments
Nov. 24, 2010, 7:36 AMMiner Lynas (LYSCF.PK) rose in Aussie trading after reaching a deal with Japanese trading house Sojitz to supply rare earth metals, with details to follow. Reports say Sojitz will pay $300M for the rights to buy 8,500 tons of the crucial metals, equal to ~30% of annual demand in Japan. (background) | Nov. 24, 2010, 7:36 AM