Analysts say confidence is building in Lynas Corporation following the Malaysian High Court’s dismissal of an appeal against the company’s rare earth processing plant.
In an investor briefing today Foster Stockbroking said Lynas was on track to put community opposition to its operations behind it.
"We feel momentum and investor sentiment is turning in LYC with the recent appeal dismissal by the Malaysian High Court removing any risk and uncertainty regarding the approval of the temporary operating licence (TOL)," it said.
In a statement yesterday Lynas said the Malaysian Minister of Science, Technology, and Innovation had heard an appeal against the Lynas Advanced Materials Plant (LAMP).
The Government appeal is separate to the High Court appeal that was dismissed last week.
Lynas said a Government ruling on the appeal was close but an exact date had not been determined.
Foster Stockbroking said following the High Court ruling the Government was likely to rule in the company’s favour.
"We believe the Malaysian High Court has set a firm and clear precedent and the appeal which is expected to be heard later this month will have the same outcome."
Analysts said Lynas stocks were on the rise and the company would rate well in the future.
"Lynas shares have been up strongly over the last week (+15%) on the back of the decision made last Thursday …" they said.
"Development of the LAMP has also been on schedule and forecasted to be completed this month."
"The only remaining obstacle to commence production is the assurance of the TOL by the AELB, which we believe will be obtained shortly."
Foster Stockbroking said the company’s temporary licence would last two years and Lynas would be handed a permanent licence if it complied with all the requirements.