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  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    "I see the big hurdle going forward as price. Lynas is ready to sell at a price above that specified in its sales contracts (based upon FOP China), which means that the customers have the ball in their court. So, we really are not certain that customers are ready to do business at "sustainable prices". This is an awkward situation until we hear what comes out of it."

    I can't comment on that as i am not privy to the contract details. Only Nick and the executive team knows
    Oct 1 01:31 PM | 1 Like Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    The fault is with United Group Resources. The company that designed helped designed and selected the parts and materials for the plant.
    Oct 1 01:28 PM | 1 Like Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    Lynas Corporation Limited (Ord Minnett)

    Update suggests Phase 1 capacity to be achieved in first half of 2014

    Lynas provided a timely update of the remediation works programs which had been announced in July 2013 but with previously limited indication of timing. The programs are under way and are expected to be completed by the end of the calendar year with sales now expected to increase to Phase 1 capacity through the second half of FY2014. The implied sales ramp-up is in line with our current forecasts but, given the need to generate revenue to offset ongoing cash burn, there appears to be little room for conservatism. Nonetheless, with rare earths prices increasing substantially in recent weeks and the stock trading well below our valuation, we remain positive on the stock. We maintain our Speculative Buy recommendation.
    Lynas released an operational update on the previously announced remediation works to repair premature wearing of equipment issues at the LAMP. The identified works programs in the cracking area have been completed, and the remaining works in the leaching area are ongoing and expected to be completed by the end of the calendar year. Commercial production of REO from the LAMP remains at reduced capacity while these works are underway.

    Lynas indicated in the release that production in the September quarter remained at reduced levels, and is expected to build up during the December 2013 quarter. We forecast sales of 0.4kt in the September 2013 quarter (15% of Phase 1 capacity), 1.2kt in the December 2013 quarter (44% of capacity) before ramping up to capacity in the second half of FY2014. The company had not previously provided guidance on the timing of the remediation works. We had tried to incorporate some level of conservatism but our current sales forecasts are only in line with the commentary in the release.

    The importance of the ramp up of sales is driven primarily by the company’s balance sheet and cash burn. Lynas had $141 million in cash at June 2013 and expected to spend $70 million in the September 2013 quarter. We estimate cash burn beyond that is ~$30 million a quarter implying total spend of ~$160 million this financial year. Assuming some level of cash buffer, we estimate Lynas needs to generate ~$80-$100 million over FY2014. At the current price of US$20/kg the implication is that Lynas needs to make ~4-5kt of sales during the year. We forecast total sales of 6.8kt during the year (implying still some headroom on our current sales forecasts), but any further delays to the remediation works and subsequent ramp up could put this at risk, in our view.

    Our positive view driven by improving rare earths prices: We highlighted a positive view on rare earths prices previously, and the uplift since then has been quicker than expected with prices (based on Lynas’ basket of products), to be up 28% from mid-June 2013.
    Oct 1 01:03 PM | 4 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    "Meanwhile the overall sector is starting to heat up as Lynas cools off, reflecting the variance in timelines (imo) that show opportunity opening up longer term while near-term producers like MCP, Lynas and GWM have actual problems plaguing them. This creates the divergence of non-producer explorers seeing their share prices rise, while the larger companies stagnate at depressed levels."

    I KNOW ITS SO FRUSTRATING. I cant believe my company is about to be a producer and REE exploration companies that i know have no hope to ever making it to production or bloody 8 years away from it are going gangbusters.

    Doesnt make any sense whatsoever!
    Oct 1 01:01 PM | 3 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    Motionstream

    Yes some of the the parts are from China BUT they were built on spec. The issues lies with the fact that the piping engineers designing the plant has under estimated how ABRASIVE the caustic concentrate slurry is.

    Hope this clarified your question
    Oct 1 12:58 PM | 3 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    "Past that point, Terry is projecting virtually no sales, which MIGHT be what really happens, but I find it more likely that the bulk of the troubles will be corrected by then and we should be seeing something like Phase 1 production levels. HOWEVER, the key question which still begs to be answered is what Sojitz will do about "sustainable pricing"

    Hi Tripleblack,

    The no sales is bullcrap, If you read the announcement i posted yesterday where Lynas has now received approval qualification acceptance means 2 things

    1) Lynas is now producing REE that is ON SPEC. tick
    2) Customers have now approved of Lynas product and ready to do business. We just need to make the damn thing and higher production numbers.

    Going forward our 2 risk factors now is market demand risk and plant mechanical risk on the 2nd run.
    Oct 1 12:55 PM | 2 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, September 12, 2013 [View instapost]
    Lynas Corporation (ASX:LYC, OTC:LYSDY) provides the following update regarding the Lynas Advanced Material Plant (LAMP) in Malaysia. As outlined in the Company’s June 2013 Quarterly Activities Report, a series of work programs involving equipment changes and materials handling to improve the capability of the cracking and leaching units of Phase 1 of the LAMP to operate continuously at nameplate production capacity were planned in the second half of 2013. These programs do not involve significant capital investments and are being progressively implemented.
    A number of these work programs in the cracking area are now complete and are working. The remaining work programs in leaching are continuing as scheduled. The Company is achieving improved operational performance in the cracking and leaching units of the LAMP; however, completion of the entire work program is required to properly assess the full extent and sustainability of improved operational performance.
    Commercial production of REO products from the LAMP remains at reduced volume until these work programs are concluded, as previously reported. As such, REO production in the September 2013 quarter remained at low volumes. Equipment modifications continue, according to the delivery lead time of various items. Production is expected to build up through the December quarter with a target of completing all changes by the end of 2013.
    The Company has made progress in the customer qualification process, with 25 qualifications for products by customers achieved to date. Furthermore, the Company has had sales of each of its full REO product suite, and this is expected to contribute to a standard price distribution for the September quarter.
    Commissioning of the Phase 2 expansion project to 22,000tpa REO production capacity is pending regulatory approvals of completion and first feed to kiln is scheduled to follow in November. As formerly announced, the subsequent Phase 2 production will be determined by a various factors, primarily being market conditions.
    As announced on 16 September, the Company has successfully agreed changes to a number of terms in the Sojitz / JOGMEC loan facility. Lynas expects to defer beyond 2013 a substantial amount of working capital which was necessary to pass some production-based tests.
    Further updates, including detailed production and sales data, will be provided in the Company’s September 2013 Quarterly Activities report, which is expected to be released on 31 October 2013.
    Sep 29 09:48 PM | 5 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    http://bit.ly/18xUoAa

    Molycorp Inc : Pomerantz Law Firm has filed a Class Action Against Molycorp, Inc. and Certain Officers - MCP
    08/14/2013 | 05:45pm US/EasternRecommend:
    0

    NEW YORK, Aug. 14, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Molycorp, Inc. ("Molycorp" or the "Company")(NYSE: MCP) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13 CIV 5697, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Molycorp between August 2, 2012 and August 7, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

    If you are a shareholder who purchased Molycorp securities during the Class Period, you have until October 14, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at http://bit.ly/18xUmIq. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

    Molycorp produces and sells rare earth and metal materials in the United States and internationally. The Company's Resources segment extracts rare earth minerals, including rare earth concentrates; rare earth oxides (REO), such as lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbX, a line of proprietary rare earth-based water treatment products. This segment's products are used in oil refinery catalyst, glass polishing, automotive, water purification, and energy efficiency lighting applications.

    The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's reported inventory was materially understated; (2) the Company overstated its income tax benefit in the first quarter of 2013 by approximately $6.5 million; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

    On August 8, 2013, the Company disclosed that, on August 6, 2013, the Audit and Ethics Committee of the Company's Board of Directors, based upon a recommendation from management, determined that its unaudited Condensed Consolidated Financial Statements for the three months ended March 31, 2013 should no longer be relied upon because they contained an error with respect to the reconciliation of its physical inventory to the general ledger, which resulted in a cumulative overstatement of costs of sales and understatement of current inventory of approximately $16.0 million. This error also caused the income tax benefit in the first quarter of 2013 to be overstated by approximately $6.5 million, the disclosure of the consolidated assessment of normal production levels to be understated by approximately $17.4 million, and the consolidated total write-down of inventory to be overstated by $18.0 million.

    On this news, shares fell $0.71, approximately 9.72%, to close of $6.69 per share on August 9, 2013.

    The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See http://bit.ly/18xUmIq.

    CONTACT:
    Robert S. Willoughby
    Pomerantz Grossman Hufford Dahlstrom & Gross LLP
    rswilloughby@pomlaw.com

    SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP
    Aug 15 02:13 PM | 3 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    TB do you think MCP may go bankrupt or not? Obviously you just trade Molycorp or you are investing long term in the company?
    Aug 14 10:56 AM | 4 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    http://bit.ly/16eNbW7

    Rare Earth prices rises again. Lynas basket is noew around $32 per kg from a low of around $20 per kg at the trough of depression
    Aug 13 12:40 PM | 3 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    LYNAS APPOINTS NEW CHIEF OPERATING OFFICER
    Lynas Corporation Limited (ASX: LYC) (OTCQX: LYSDY) is pleased to announce the appointment of Jean Claude Steinmetz as the company’s Chief Operating Officer.

    Mr Steinmetz, who has significant expertise in chemical engineering, will be based in Malaysia from 12 August 2013, to oversee the safe and efficient operation of the Lynas Advanced Materials Plant (LAMP) in Malaysia, as well as the mining operations and concentration plant at Mount Weld in Western Australia.

    Lynas Corporation Chief Executive Officer Eric Noyrez said Lynas was fortunate to gain a senior executive of Mr Steinmetz’s calibre to run the company’s operations.
    “Jean Claude has extensive senior management and board level experience, and his in-depth knowledge of the international automotive, chemical and materials industries will be invaluable in his new role,” Mr Noyrez said.
    Mr Steinmetz has worked in various countries around the world for three major chemical and electrical corporations, DuPont de Nemours, General Electric (GE) and Solvay for more than 30 years, providing him with relevant expertise in chemical process manufacturing.

    “Jean Claude’s experience and relationships will also assist Lynas in strengthening customer relationships as well as helping to develop other sales and business opportunities for Lynas throughout Asia, Western Europe and the Americas,” Mr Noyrez added.

    As Chief Operating Officer and a member of the Lynas Executive Committee, he will be responsible for the global operating business units of Lynas.

    For further information:
    Investors: Please contact Alan Jury or Alistair Reid on +61 2 8259 7100or visit http://www.lynascorp.com
    Australian/international media: Please contact Cameron Morse from FTI Consulting on +61 8 9485 8888

    On June 1, 2006, Jean-Claude Steinmetz was appointed as Rhodia Vice President in charge of the Automotive and Transportation Markets. In his new position, he will have the mission to accelerate Rhodia’s development and penetration efforts in both markets. He joined Rhodia in 1999 as President of Rhodia’s Engineering Plastics business, and most recently was Vice President of Rhodia’s Engineering Plastics and Industrial Yarns Strategic Business Unit. He will report directly to Yves Boisdron, Rhodia Group Executive Vice President, Strategy.

    As president of Rhodia Engineering Plastics from 1999 - 2006, Jean Claude Steinmetz was responsible for the global leadership of 1,300 people in eight manufacturing facilities, seven technical centers, and more than 60 sales offices worldwide.

    “Under Jean-Claude’s leadership at the head of Rhodia Engineering Plastics,” commented Boisdron, “our engineering plastics business has doubled in both size and profitability, and led the polyamide industry in the introduction of new technology over that time frame.”

    Prior to joining Rhodia in 1999, Steinmetz spent five years with GE Lighting - Europe, as a General Manager responsible for programmes in the UK and Hungary, and as Managing Director of Lindner/GE Lighting. From 1984 -1994 he worked for GE Plastics - Europe where he held a range of management posts including: Manager Automotive Programs, France and Spain; Marketing Director, and later Commercial Director, of GE Structured Products.

    Jean Claude Steinmetz holds both BSc. in Chemical Engineering and MSc. degrees in Industrial Management from the University of
    Aug 12 12:00 AM | 6 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    Jimp, As you already know I am a long term investor in Lynas. I would like to know more about their competitors and if Lynas has an edge or not. I want to evaluate their strength and weaknesses for both companies.
    Aug 10 09:45 AM | 3 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    Hi my fellow American REE Investors,

    I am asking for you advice and thoughts on this. With Molycorp holding over 1 billion in debt, is there a high risk of the company going broke or undergo some sort of Major re structure?

    I have been focused on Lynas my whole life and that's the company i know inside and out BUT I have done very surface research on this company.

    Can you please state your case Bullish or Bearish on the company and have an educated discussion? I would love your thoughts on this as I am sure alot of your guys have been watching this company closely.

    Thank you
    Aug 10 12:51 AM | 4 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    http://bit.ly/16yjcqg

    A CHINESE state-owned company wants a better process to make titanium dioxide, used in paint, so it paid spies to steal it from industry giant DuPont.
    American prosecutors say Pangang Group aimed high. The Chinese state-owned company wanted a better process to make titanium dioxide, a white pigment used in paint, toothpaste and Oreo cookie filling. So it paid spies to steal it from industry giant DuPont.
    Pangang Group was indicted last year on US charges of industrial spying and a retired DuPont scientist pleaded guilty to selling secrets.
    Prosecutors say another defendant was encouraged by a Chinese leader to "make contributions" to the country - rare evidence of high-level official involvement. Then the case stalled while prosecutors tried to force Pangang to answer the charges in a US court.
    DuPont says it has asked Chinese authorities to block use of its stolen secrets. There is no indication they have taken action.
    The American chemical producer is far from alone. China's reputation as a global centre for industrial spying is well established but experts say the scale is growing as Beijing tries to create its own competitors in fields from robotics to energy to pharmaceuticals......cont


    Read more: http://bit.ly/16yjcqk
    Aug 8 08:30 PM | 4 Likes Like |Link to Comment
  • REE / Strategic Minerals Concentrator, June 5, 2013 [View instapost]
    China launches new crackdown on illegal rare earth production

    Published on Aug 07, 2013


    BEIJING (REUTERS) - China will next week launch a three-month campaign to crack down on the illegal exploration, production and distribution of rare earth elements, the country's industry ministry announced on Wednesday.

    The Ministry of Industry and Information Technology said on its website that the campaign, lasting from August 15 to November 15, would focus on the role and responsibilities of local governments.

    China is responsible for more than 90 per cent of global supplies of rare earths, a group of 17 metals with a range of applications in the renewable energy, glassmaking and defence industries among others.

    Beijing has tried to exert more control over the sector, where unauthorised production, environmental pollution and smuggling have been rife, but its efforts to cut output and impose strict export quotas have been criticised by foreign governments concerned about China's chokehold over supplies.

    http://bit.ly/19agI75
    Aug 7 11:26 AM | 6 Likes Like |Link to Comment
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