01.08.2014/4/18 (www.871899investors.de) - The shares of the rare earth producer Lynas (WKN XNUMX / ASX LYC) fell by almost XNUMX% today. Investors penalized the stock after the company reported lower prices for its products and as questions persist about its debt structure.
Lynas has to go to 30. September, a debt payment in the amount of 35 million USD serve and the market is therefore speculated on whether Lynas will have enough cash to continue its business. The company itself stated that it was working with Nomura and its other investors on a possible restructuring of existing financing facilities and that substantial progress had been made in this respect.
In May, the company raised some 40 million dollars to meet its short term working capital needs. Nomura Australia was also hired to arrange the purchase and adjustment of a credit facility with the Japanese companies Sojitz and JOGMEC.
Analysts had predicted last year that while Lynas would be able to service a $ 10 million payment due in January to Sojitz, further repayments would require refinancing or raising capital.
Deutsche Bank had predicted that the company would be missing up to 2015 140 million USD by mid-year, considering the planned repayments to Sojitz. Lynas said in March that, given the repayments on credit facilities and planned production increases, additional funds would be needed to have the necessary liquidity.
Despite discussions about the debt situation, the company continues to work to increase production at its processing plant in Malaysia. Lynas reported fourth consecutive quarter of rising production and sales. In the second quarter, 1.882 tons were produced, 73% more than in the previous quarter. 1.630 tons were delivered, which represents an increase of 117% compared to the first quarter 2014.
As Lynas explained, the June quarter's production was 47,5% of the fiscal year 2014, while deliveries were 54,2% of the total annual volume. Production in 12 months to 30. June was at 3.965 tons, while 3.008 tons were delivered.
However, Lynas' selling price in the quarter decreased more than 4 USD to 18,25 USD per kilogram.
Lynas had appointed a new CEO during the quarter following Eric Noyrez's surprise move in June. He was replaced by Amanda Lacaze, who was admitted to the company's board in January. Lynas also announced that the Company's headquarters will be relocated to Malaysia, which will reduce overhead costs by around 50%.
Source: http: //www.4investors.de/php_fe/indexgoldinvest.php? Section = goldinvest & ID = 2515
