LYC +0.74%: rare earth business Lynas announced their 4th quarter production numbers today with shares trading slightly higher despite a more cautious tone. Total NdPr production came in at 1,579t for the quarter, down around 6.5% from the previous quarter, with sales revenue falling more than 10% to $294.5m. The fall in production was blamed on a lack of supply of water in Malaysia with the company continuing to implement alternative processes to reduce reliance. Prices are currently 70% higher than 12 months ago though China demand appears to have started to show signs of flattening out. The outlook remains bullish though, with most of their product going to customers outside the Chinese market, the construction of their Kalgoorlie processing plant continues on track and they recently won a $120m contract with the US Government to expand operations there.
MM remains long and bullish LYC in the Emerging Companies Portfolio
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