05-Sep-2023: I've been trawling through some recent MoM (Money of Mine) podcast episodes today while doing other things, and I came across a very interesting discussion on Lynas, and why they are not well liked by the locals in Kalgoorlie. It suggests that they don't rate a Social Licence to operate as being particularly important, and may give some insight into why things went so pear-shaped for them in Malaysia - apart from the court challenges and protesting from Chinese-sponsored protest groups that may have been mostly "rent-a-crowd" participants, or so I was previously led to believe.
If you're interested in Lynas as a prospective investment, or are already invested in the company, or even if you're just interested in how a company like Lynas can piss off the local community in a big way and how that might affect their future prospects, this is worth a listen:
Lynas Confirms Kalgoorlie Cost Blowout and Red 5 cash? | Daily Mining Show - YouTube
Plain Text: https://www.youtube.com/watch?v=iW78Zhs8tyo
August 29th, 2023: Their Show Notes: "More annual results with intriguing company commentary for us to pull apart today. We get the ball rolling with a snippet from Monday’s Fortescue (FMG) investor call, honing in on why Fiona Hick departed after just 6-months in the job. We have an in-depth discussion on Lynas (LYC), looking into their Kalgoorlie plant build, the social licence to operate and their current rare earth strategy. Then, Red 5’s (RED) annual result caught our eye, with a close look at trade payables. Ramelius (RMS) get a mention with majority ownership at Musgrave (MGV), while Hillgrove Resources (HGO) is our final talking point of the day, with the aspiring copper producer releasing some copper intercepts from depth."
CHAPTERS
0:00 Preview
1:11 Intro (with Brodes)
7:07 Fortescue investor call
10:16 Lynas Kal update, Community standing & Rare-earth strategy
24:16 Red 5 post up annual numbers
37:11 Ramelius get majority ownership at Musgrave
37:35 Hillgrove approaching first production
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DISCLAIMER
All Money of Mine episodes are for informational purposes only and may contain forward-looking statements that may not eventuate. The co-hosts are not financial advisers and any views expressed are their opinion only. Please do your own research before making any investment decision or alternatively seek advice from a registered financial professional.
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Disclosure: I do not hold Lynas (LYC) shares, but I have done in prior years, and it was far from a smooth ride. I would be worried about a company that is prepared to drain Kalgoorlie's parks and reserves irrigation water reservoir - because they (LYC) have the right to - a very stupid decision by the Kalgoorlie-Boulder City Council to be sure - and then spend so little supporting the local community. The locals already hate them and Lynas are doing very little to try to improve their standing in the community in which they wish to operate.