Lynas is an integrated rare earth mining and processing operation with a rare earth mine in Mt Weld, WA, and a processing plant in Malaysia. It has diligently undergone significant technical improvements, and is now running reliable neodymium praseodymium (NdPr) oxide production of 5,200ktpa, prices of which have recovered sharply.
NdPr prices have now almost doubled in recent months, as a result of tightening global supply, as well as increasing incremental demand from electric vehicle and wind turbine manufacturers.
The company remains geared for the moment, but has significant operating leverage to generate significant free cash at spot NdPr prices, and could be debt-free rapidly.
We have a Buy recommendation and a $0.23 price target for LYC. Research here: (VIEW LINK)
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