Lynas Corporation Limited

LYC Details

Decent Quarterly Performance: Lynas Corporation Limited (ASX: LYC) has recently announced that the group made a voluntary early repayment under the JARE senior loan facility with the principal amount of US$20 Mn. Under the JARE senior loan facility, the group could make early principal repayments at any point of time without penalty or break costs. Both of Lynas’ loan facilities are interest-based facilities, with no fixed principal repayments due until maturity. Further, the management stated that both JARE and the convertible bondholders have been long-term strategic supporters of its business and reflect positive cash flow position of the company. Moreover, the company has received an additional capital of $1,938,021.50, following the exercise of 3,876,043 Warrants exercisable at $0.50 per Warrant. As a result of the exercise of Warrants, the company has been issued 3,876,043 new ordinary shares in the market.


Quarterly Highlights (Source: Company Reports)

The group has delivered a good set of result in March quarter and recorded sales growth of 24% in Q3FY18 that amounted to A$85.9 Mn as compared to prior corresponding period. The Company had $52.912 Mn in cash at the end of the March 2018 quarter. The currency composition of the Group’s cash at 31 March 2018 was A$4.8 Mn, US$5.8 Mn and MYR 119.9 Mn. During the period, the company experienced that the Australian Dollar weakened against both the US$ and MYR, thus resulted in positive exchange rate adjustment on these currencies and supported topline growth of the company. In the last one year, the share price rose by 98.26% as at July 03, 2018 and currently inching back from its 52-week high. The stock has fallen over 7% during last three months, and we give a “Sell” recommendation on the stock at the current market price of $2.250, looking at the fair value.
 

LYC Daily Chart (Source: Thomson Reuters)

 
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