LYNAS CORPORATION LIMITED (LYC)



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General Information
Company Name: Lynas Corporation Limited
Stock Code: LYC
Website: www.lynascorp.com
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 343
Equiv. Shares (M): 1,961

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.185 $ 0.185 $ 0.187 $ 0.180 $ 0.175 6,066,121 $ 0.010  5.714 %

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 2nd Apr 2014
12 Month Target Price (average): $0.288
Brokers Surveyed: 4

Company Overview

Business Description:
Lynas Corporation Limited (LYC) is principally involved in the exploration and development of rare earths minerals. LYC is focused on becoming a global rare earths producer and supplier through its focus on RED (Rare Earths Direct) branding. LYC’s main asset is Mt Weld rare earths deposit in Western Australia.

Strategy Analysis:
LYC have a strategy of creating a reliable, fully integrated source of supply from mine through to the customer. LYC aims to become the benchmark for the security of supply and environmental standards in the global rare earths industry. Lynas Corporation reported positive cash flow of $99.61m for the quarter ended 31 December 2012. Operating cash flow for the period was $(30.32m). Payments for exploration and evaluation were nil. Investing cash flow was $130.74m. Financing cash flow was $(814,000). Cash in hand at the end of the quarter was $226.22m.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  A -143.6 -7.7 -- 0.0 0.0 0.0 --
2012  A -87.8 -5.1 -- 0.0 0.0 0.0 --
2011  A -59.1 -3.5 -- 0.0 0.0 0.0 --
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
BHP Billiton (BHP) $122,365 M -0.2435 0.0830 -0.0500 15.9923 14.7663 15.5428 0.0328 0.0294 0.0307
Iluka Resources (ILU) $3,810 M -0.6600 0.1399 1.3166 29.6707 26.0297 11.2360 0.0099 0.0215 0.0427
Lynas Corporation (LYC) $363 M -- -- -- -- -- 33.6364 0.0000 0.0000 0.0000
Rio Tinto (RIO) $27,614 M 0.5848 -0.2605 0.0467 8.2528 11.1606 10.6622 0.0339 0.0309 0.0338
Sims Metal Management (SGM) $2,026 M -0.7514 4.5651 0.6395 118.3990 21.2752 12.9763 0.0000 0.0108 0.0302

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
LYC 1.71 -- 0.55 -- 350.0
Market 1.07 15.9 1.26 1.99 1.71
Sector 0.88 12.2 0.67 0.72 4.97

Directors
Name Position Start Date
Mr Eric Noyrez Chief Executive Officer,Executive Director 31 March 2013
Mr Nicholas Curtis Non-Executive Chairman 28 June 2001
Mr William (Liam) Gerard Forde Non-Executive Deputy Chairman 04 December 2007
Mr Jake Klein Non-Executive Director 25 August 2004
Ms Kathleen Marie Conlon Non-Executive Director 01 November 2011
Ms Amanda Lacaze Non-Executive Director 01 January 2014

Management
Name Position
L Catanzaro Chief Financial Officer
Andrew Arnold Company Secretary
A Jury Executive Vice President Corporate Affairs
G Barr Executive Vice President People and Culture
Sally McDonald Joint Company Secretary

Calendar of Events
Date Event
30 January 2015 Report (Quarterly)
30 October 2014 Report (Quarterly)
30 October 2014 Report (Annual)
30 July 2014 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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