MENU

Lynas Corp share price climbs 5% on licence extension speculation

The Lynas Corporation Ltd (ASX: LYC) share price has surged 5% higher on the ASX today after reports the Malaysian government is nearing a decision on the company’s licence extension.

What decision is Lynas Corp waiting on?

The company is awaiting a decision by the Malaysian government on its operating licence, which is vital for its continuing operations and expansion within Malaysia and greater Asia. Malaysian newspaper, The New Strait Times, Australian High Commissioner to Malaysia Andrew Goledzinowski said the government was close to extending Lynas’ operating licence and said the Australian government is “waiting for the final determination in the matter”.

According to Goledzinowski, authorities asked Lynas to export stockpiles of waste product from its processing plant by 2 September 2018 when its licence was due for renewal.

While there appears to be little other news for the rare-earth mining company, Lynas’ investors have been buoyed by the potential advancement in licence negotiations and a little more surety about the company’s future in Malaysia.

What else has been happening for Lynas?

The company announced progress for its NUF residue that it produces at its Lynas Malaysia plant, with an agreed pathway for the management of NUF following extensive consultation with the government and regulators. The updated NUF action plan included commercialisation options for NUF and long-term NUF disposal solutions which were big steps for the controversy-plagued company.

The company reported softer earnings in its half-year results, with revenue falling 10.5% on prior corresponding period (pcp) to $179.8 million, while net profit came in 62.6% lower on pcp at $19.0 million.

Is Lynas a Buy?

The current share price of $1.65 per share is a far cry from the $2.31 valuation at the start of 2018, or the record-high $24.09 share price way back in April 2011. With no dividend yield on offer, investing in Lynas at this point is a real punt on their ability to clear regulatory hurdles and commercialise its products in Malaysia in coming years.

In the meantime, I’d be steering clear of Lynas and fellow mining prospects Galaxy Resources Limited  (ASX: GXY) and Orocobre Limited  (ASX: ORE) in favour of these top growth shares that have been tipped as market beaters.

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!