LYC -0.34%: the rare earth miner started strong but ended with a whimper today following news of water supply issues at their Malaysian processing plant. They have been without supply from their main source for a week now after a few months of patchy supply. Since July, Lynas has been relying on a mix of trucked water and alternative sources to support the production of 800t of NdPr at the site, however, the persistence of the issues will likely weigh on the run rate in September. Lynas has provided skilled workers to help rectify the issue. Water issues aren’t new for the site, and Lynas has a strong track record of dealing with it without too much disruption.
MM remains long and bullish LYC
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