NST Online Business Times : latest

Lynas to raise A$208m for Malaysia plant

Posted: 08 Nov 2012 05:57 PM PST

MELBOURNE: Australia's Lynas Corp Ltd plans to raise up to A$200 million (US$208 million) to help fund the start-up of its controversial Malaysian rare earths plant, as it set a timeframe of 3-4 months for the factory to start earning.

The US$800 million plant - the world's biggest outside China - has been ready to fire up since early May, but Lynas has been embroiled in lengthy environmental and safety disputes that had raised questions about whether the firm's cash would last until the plant kicked off.

A court on Thursday lifted a suspension on Lynas's licence to operate the processing plant, sending Lynas shares up 12 percent. The shares are suspended Friday morning.

The plant near the eastern city of Kuantan is considered important to breaking China's grip on the processing of rare earths, which are used in products ranging from smartphones to hybrid cars. But protests over possible radioactive residue have drawn thousands of people.

Lynas said the raising will comprise a fully underwritten institutional placement to raise up to A$150 million, and a share purchase plan to raise about A$50 million.

"Funds raised will be used for working capital and general corporate purposes during commissioning and ramp-up at the Lynas Advanced Materials Plant," Lynas said in a statement to the Australian Stock Exchange.

Lynas said in a presentation it expected it would take 3-4 months to ramp up production from the plant, including shipping material from its Mt Weld mine in Western Australia, processing it and receiving its first cash from sales. - Reuters

Affin cuts target price on Unisem

Posted: 08 Nov 2012 06:24 PM PST

Affin Investment Bank cut its target price on Unisem Berhad to RM1.36 from RM1.38 after the semiconductor firm's third-quarter results came in slightly below the bank's expectations.

Affin said a slower-than-expected recovery in global demand for Unisem products could pose a risk to its 'add' call on the stock.

Unisem returned to the black after registering losses in the three previous quarters. The company reported a 58 percent rise in net profit for the third quarter compared with a year earlier, helped by lower operating expenses, higher foreign exchange gains and changes in product mix, it said in a Bursa Malaysia filing on Thursday.

Affin attributed the turnaround to, among others, "further cost discipline by the group" and "improvement in product mix."

At 10.17am, Unisem was up RM2.63 at RM0.975 while the benchmark composite index was down 0.26 percent at 1,636.84 points.

Kredit: www.nst.com.my

Khamis, 8 November 2012

NST Online Business Times : latest

NST Online Business Times : latest

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