Lynas Share Price Down on Malaysia Processing Plant Update (ASX:LYC)
The share price of Lynas Corporation Ltd [ASX:LYC] is down 2.44%, trading at $2.40.
You can see how the Lynas share price bounced strongly off the March market lows below:
Today, the company updated investors on its proposed Malaysian processing plant.
LYC share price opens strongly and then fades away
The LYC share price jumped on the opening of trade in the morning, but selling pressure came in over the course of the day.
Here was the key passage from the update:
‘The Atomic Energy Licensing Board (AELB) has approved the proposed site at Bukit Ketam, Malaysia for the construction of a Permanent Deposit Facility (PDF) for Water Leach Purification (WLP) residue, subject to completion of relevant studies and final approvals by regulatory authorities.’
The political dimensions in Malaysia have impacted the LYC share price before.
And to a degree, the update today might be a yellowish-green light, more than a clear go ahead.
A few more hurdles are on the horizon.
That being said, with the no end to the trade war in sight, there could still be a major catalyst out there for the LYC share price.
Outlook for LYC share price
After bouncing strongly from the March market lows, the LYC share price remains politically charged.
If you were looking to trade LYC, you’d likely need to have a firm grip on regulatory and political developments in Malaysia and the US.
Rare earths remain a potential ‘nuclear option’ in the trade deal, along with long-term demand from EVs and the defence sector.
In the coming months, I’d be looking for further progress on its US plant as a potential positive long-term signal.
You can get all our Lynas coverage here.
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