Lynas Corporation

Lynas Corp are a Sydney based junior mining and chemical processing company listed on the ASX. Lynas is focused on developing the Rare Earths resource at Mt Weld, Western Australia.

Lynas asked Navigator Project Finance to assist with the financial modeling of the Rare Earths Project, a challenging project which recovers ore rich in rare oxides from our West Australian mine site, transports it via ship to our plant in Shandong, China where it is then processed to produce a spectrum of rare earths products.

Lynas had an existing detailed spreadsheet which gathered information together and ultimately calculated a project return. As discussions with potential Project Financiers developed it became clear that we needed a more presentable and robust financial model to assist deal structuring and price negotiation.

Navigator Project Finance was recommended to us by the project finance bank to assist us with this rework of the financial modelling. Two weeks after initial contact, the Navigator team had interrogated the existing analysis, understood our needs regarding the scope and requirements of the model and had prepared an advanced draft of the new model for detailed review.

The new custom-built model contained all of the operational inputs and calculations required and also included flexible debt financing mechanics and comprehensive credit assessment ratios suitable for the financiers. Importantly, the model is easy to operate which has allowed us to retain control of the model.

The new model is easy to navigate, analyse and present, Lynas has received positive feedback on the financial model from potential debt and equity participants. The professional presentation and functionality of the model has made our financing process smoother.

Lynas Corp remain in contact with the Navigator Project Finance team and are likely to use them for future projects.

Dr Matthew James
General Manager Corporate and Business Development
Lynas Corp
Lynas Corp Website