Shares of rare earths miner Lynas Corporation Limited (ASX: LYC) have continued their rapid descent today with the stock trading 5.3% lower at just 5.4 cents. At their current price, the shares have fallen a stunning 85.4% over the last 12 months, while they have crumbled a massive 98% since peaking at $2.70 in mid-2011.
While some investors are more than willing to accept a high level of risk in the hope of maximising their returns, Lynas still looks like a company to avoid at all costs.
The company's financial health has been rapidly declining, which has already resulted in two capital raisings over the last 12 months. With just $16.9 million left in the bank as at 30 September, I wouldn't be surprised if another capital raising were to occur which would further dilute shareholder equity.
