Troubled rare earths miner Lynas to move from Sydney to malaysia
Nervous investors ditch Lynas ahead of move to Malaysia July 3, 2014 The Age, Brian Robins Troubled rare-earth miner Lynas Corp is to shift its head office abroad as part of a renewed cost-cutting regime as the company seeks to stop haemorrhaging cash.
It also comes amid production difficulties at its recently commissioned Malaysian processing unit that have yet to be resolved, and as negotiations continue to refinance a key funding package.
Lynas said it would move its head office to Kuala Lumpur, from Sydney, which will result in an unspecified number of job losses, with further jobs to go at its Perth office…….Investors were unnerved by the latest news, pushing Lynas shares down 7 per cent to close at 13¢.
Lynas is not the only rare earths producer encountering ongoing problems in lifting output, with US group Molycorp also struggling to bed down a capacity expansion.
Equally important to Lynas Corp’s near-term progress is resolving negotiations to refinance a $US325 million loan, via Nomura.
There has been ”no material development” with this refinancing, a Lynas spokesman said.
To help shore up its balance sheet, Lynas recently raised $40 million from shareholders as well as replacing its chief executive. http://www.smh.com.au/business/nervous-investors-ditch-lynas-ahead-of-move-to-malaysia-20140702-3b8so.html#ixzz36Xf4ozEk
No comments yet.
1 This month
of the week – Disrupting War & Militarism in Oceania. Active solidarity. Radical practice.
Antinuclear 
Leave a comment