Why Lynas Corporation Ltd gained slight momentum?

Repayment of JARE senior loan facility: Lynas Corporation Ltd (ASX: LYC) edged higher on June 28, 2018 after the company made a voluntary early repayment under the JARE senior loan facility. The company has repaid the principal amount of US$20 million. As per the JARE senior loan facility, LYC can make early principal repayments at any time without penalty or break costs. Both of the company’s loan facilities are “interest only” facilities, and no fixed principal repayments due until maturity. Moreover, under the JARE facility, on each 30 June and 31 December, when the total unrestricted cash balance exceeds A$40m, the surplus is paid as a principal repayment to JARE pursuant to a cash sweep mechanism. If LYC gets the proceeds from an equity raising (such as an issuance of shares or an exercise of warrants), then the following amounts are exempt from the cash sweep: (i) 75% of the proceeds received up to a cumulative balance of US$50m, and (ii) 50% of the proceeds above a cumulative balance of US$50m. Meanwhile, LYC is on track to achieve its Lynas NEXT targets of 500 tonnes/month of NdPr from April 2018, and 600 tonnes/month of NdPr from January 2019. Meanwhile, LYC stock has fallen 7.87% in three months as on June 27, 2018  and is trading at a P/E of 23.42x.

lynas corp.pngLynas’ loan facilities after Early Principal Repayment (Source: Company Reports)


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s