Lynas Deal for Meteoric to Help with Heavy Rare Earths Expansion
Dow Jones
Oct 02
0453 GMT - Lynas's planned acquisition of Meteoric Resources appears to be at least initially about securing heavy rare-earths supply for its expanding Malaysia refining plant, says UBS. The bank says the deal demonstrates the increased interest in Brazil for rare earths. It says it's "mindful the potential (risk and/or opportunity) for further LYC investment in the region, particularly around refining capacity." UBS trims its share-price target on Lynas to A$21.00 from A$22.50. That reflects the deal and capex required to develop Meteoric's Caldeira project, it says. The bank keeps a buy rating. Shares in Lynas are up 0.6% at A$12.72, after falling by 8.6% Thursday on the takeover news.
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