Lynas Corporation (ASX: LYC) had made an announcement related to the appeal which the company has made by the issuance of the press release. As per the press release dated January 3, 2019, Lynas Malaysia had decided to place the appeal in accordance with Atomic Energy Licensing Act 1984 with regards to the decision which was mentioned in MESTECC press statement as well as in Deputy Director’s (AELB) letter.
The decision revolves around on applying the new condition with regards to Lynas Malaysia’s operating license renewal which happens to be due on September 2, 2019. As the market trackers must be aware, as per condition, Lynas Malaysia’s WLP (or Water Leach Purification) residue needs to be exported out of Malaysia and this has to be done prior to September 2, 2019. We would now be looking at the viewpoint of the company’s management.
As per the top management of Lynas Corporation, they would be focusing on solving the issues with the help of the talks involving the government of Malaysia. They have also stated that, as per statute in Malaysia, the placement of appeal needs to be done in the time span of 30 days. If this 30-day condition is not followed, it might result in losing some of the appeal rights. The management had also thrown some light on the issues with respect to new condition. These issues revolve around getting the approvals of the regulators, huge costs as well as proposed timetable with regards to WLP residue export. The top management of the company had stated that the placement of appeal is done so that the legal rights can be preserved, and the company also stated that the talks are underway.
Lynas Corporation had also issued the annual general meeting presentation in November 2018 in which it had given the information related to Malaysian Regulatory update. As reflected in the presentation, in the month of October 2018, the establishment of the committee was done so that the activities related to the evaluation of the aspects with respect to operations of Lynas Malaysia can be done. The Review Committee had also done the evaluation of the information which was given by Lynas, anti-Lynas groups as well as relevant government agencies. The AGM presentation had also stated that review committee had even been to plant of Lynas Malaysia and they also conducted the public hearing, and this was done in Kuantan in the middle of November.
We would now see how the stock is performing today. At the time of writing, the stock price of Lynas Corporation is trading in red and is down A$0.038 per share or 2.452%. The stock price happens to be A$1.512 per share. The market capitalisation of Lynas Corporation is ~$1.03 billion, and the stock price is presently trading towards the lower level. Looking at the past performance, the stock has delivered the return of -32.02% in the time span of 6 months.
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