Saturday 10 May 2014

SMSL/PSHK Press statement on the 10th May 2014


SMSL hereby call upon the Malaysian regulatory authority AELB and the Minister of MOSTI NOT to consider the application by Lynas for the Permanent Operating license in view of the likelihood that it is forced to close because of financial reason.

The TOL (Temporary Operating License) for two years is due to expire on the 2nd September 2014. Under the terms of the issuance, as recommended by the IAEA report, Lynas is required to submit the plan for the PDF (Permanent Deposit Facility) for its radioactive waste WLP before TOL is granted.

Lynas not only failed to submit the plan before the issuance, AELB made a provision for them to comply within 10 months after it commenced operating. On the eve of the dateline, Lynas submitted a ‘conceptual’ plan of the PDF while the Deputy Minister of MOSTI, Dato Abu Bakar Mohd Diah replied in the Parliament that Lynas did identify the site and the plan for the PDF but he declined to reveal the site! (http://www.thenutgraph.com/lynas-an-unsolved-conundrum/)

This showed clearly that Lynas failed to comply with the requirements stated in the TOL.

The IAEA report also recommended that Lynas deposit USD50 million with the AELB in installments of USD10 million each year for 5 years. This is grossly inadequate as LAMP is 10 times the size of ARE which is currently undergoing a clean-up operation which cost the former ARE owner USD100 million! In the event of a foreclosure, the residents and the people of Malaysia will be left holding the toxic ‘unwanted baby’!

The risks of a foreclosure can be real as the following paragraphs taken from various reports in the public domain show:

In its first quarterly report 2014, (note 1) Lynas has a closing cash balance of AUD$23.4m as at 31 March 2014. Their next quarter will require AUD$48.172 m to operate as tabled in its quarterly cash flow report (note 2)

Lynas seeks to raise AUD$30 million through rights issue and another AUD$10 million through institutional placement to boost its working capital.

On this, the foreign analysts commented:

“It’s almost a stay of execution,” UBS AG analyst Jo Battershill said by phone. “If there’s any price weakness, a slowdown in the Chinese economy, or a slowdown in demand for rare earths, than how long does it buy them? It’s hard to know.” (Note 3)

"The market's just looked at it and gone, 'well, this is kind of what people thought and the operational side of things continues to disappoint," UBS Metals and mining analyst Jonathan Battershill said.

"Despite the company saying they think they can have the production level up at 11,000 tonnes by June ... we are not really seeing the numbers that provide confidence. Even under the assumption that it will be 11,000, they still need to raise money." (Note 4)

We are gravely concerned about the possible foreclosure of Lynas. The toxic legacy that will be left behind will burden all future generations for centuries to come!

This is definitely not an unfounded or baseless concern as our research showed the cash flow problem and the future rare earth market ahead for Lynas will be much more challenging than before! (See report attached).

We hereby also call upon the Lynas Monitoring Committee set up under the recommendation of Parliamentary Select Committee to equally exercise care and prudence and factor in the financial hardship Lynas is currently experiencing before they make their final recommendations to the Minister concerned. If they failed to exercise them in their deliberations they are answerable to all the future generations in Malaysia!

For further information please contact:

SMSL Hotline 012 982 3302

Note: (1)
https://www.lynascorp.com/Quarterly%20Reports/2014/Q1%202014%20Quarterly%20Report_final%201324839.pdf)

Note (2)
(http://www.asx.com.au/asxpdf/20140430/pdf/42pbgdm9s1vfj7.pdf)

Note (3)
http://www.bloomberg.com/news/2014-05-05/lynas-to-sell-shares-defer-debt-payments-after-rare-earth-slump.html

Note (4)
http://www.smh.com.au/business/mining-and-resources/lynas-shares-hit-5year-low-as-funding-crunch-looms-20140311-34k1z.html

SJH’s research report.





5 comments:

  1. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    BORROWERS APPLICATION DETAILS


    1. Name Of Applicant in Full:……..
    2. Telephone Numbers:……….
    3. Address and Location:…….
    4. Amount in request………..
    5. Repayment Period:………..
    6. Purpose Of Loan………….
    7. country…………………
    8. phone…………………..
    9. occupation………………
    10.age/sex…………………
    11.Monthly Income…………..
    12.Email……………..

    Regards.
    Managements
    Email Kindly Contact: urgentloan22@gmail.com

    ReplyDelete
  2. $$$ GENUINE LOAN WITH 3% INTEREST RATE CONTACT US FOR MORE DETAILS $$$.
    Are you looking for a loan to clear off your dept and start up your own Business? have you being going all over yet not able to get a legit loan Company that will loan you? Here is your final solution, We can give you any amount you need provided you are going to pay back within the period of time given without any problem. Apply now and contact us for more details via email below.
    Email: jubrinunityfinancialloan@gmail.com

    Application For loan.
    First Name:
    Last Name:
    Date Of Birth:
    Address:
    Sex:
    Phone No:
    City:
    Zip Code:
    State:
    Country:
    Nationality:
    Occupation:
    Monthly Income:
    Amount Needed:
    Duration:
    Purpose of the loan:
    E-mail address:

    Email: jubrinunityfinancialloan@gmail.com

    ReplyDelete
  3. Are you in need of a loan? Do you want to pay off your bills? Do you want to be financially stable? All you have to do is to contact us for more information on how to get started and get the loan you desire. This offer is open to all that will be able to repay back in due time. Note-that repayment time frame is negotiable and at interest rate of 3% just email us creditloan11@gmail.com

    ReplyDelete
  4. Hello Everybody,
    My name is Ahmad Asnul Brunei, I contacted Mr Osman Loan Firm for a business loan amount of $250,000, Then i was told about the step of approving my requested loan amount, after taking the risk again because i was so much desperate of setting up a business to my greatest surprise, the loan amount was credited to my bank account within 24 banking hours without any stress of getting my loan. I was surprise because i was first fall a victim of scam! If you are interested of securing any loan amount & you are located in any country, I'll advise you can contact Mr Osman Loan Firm via email osmanloanserves@gmail.com

    LOAN APPLICATION INFORMATION FORM
    First name......
    Middle name.....
    2) Gender:.........
    3) Loan Amount Needed:.........
    4) Loan Duration:.........
    5) Country:.........
    6) Home Address:.........
    7) Mobile Number:.........
    8) Email address..........
    9) Monthly Income:.....................
    10) Occupation:...........................
    11)Which site did you here about us.....................
    Thanks and Best Regards.
    Derek Email osmanloanserves@gmail.com

    ReplyDelete
  5. Hello Everybody,
    My name is Ahmad Asnul Brunei, I contacted Mr Osman Loan Firm for a business loan amount of $250,000, Then i was told about the step of approving my requested loan amount, after taking the risk again because i was so much desperate of setting up a business to my greatest surprise, the loan amount was credited to my bank account within 24 banking hours without any stress of getting my loan. I was surprise because i was first fall a victim of scam! If you are interested of securing any loan amount & you are located in any country, I'll advise you can contact Mr Osman Loan Firm via email osmanloanserves@gmail.com

    LOAN APPLICATION INFORMATION FORM
    First name......
    Middle name.....
    2) Gender:.........
    3) Loan Amount Needed:.........
    4) Loan Duration:.........
    5) Country:.........
    6) Home Address:.........
    7) Mobile Number:.........
    8) Email address..........
    9) Monthly Income:.....................
    10) Occupation:...........................
    11)Which site did you here about us.....................
    Thanks and Best Regards.
    Derek Email osmanloanserves@gmail.com

    ReplyDelete