Lynas Warns of Uncertainty Over Texas Plant as Profit Slumps, Launches A$750m Equity Raising

MELBOURNE — Lynas Rare Earths, the world’s largest rare-earths producer outside China, reported a sharp profit decline and warned of uncertainty over its Texas processing plant. Net profit after tax for the year ended June 30 fell to A$8 million, down from A$84.5 million a year earlier, missing consensus estimates of A$30.4 million. The company cited higher depreciation costs and weaker-than-expected output at its Kalgoorlie facility.

Lynas warns

Lynas is negotiating with the US Department of Defence for an offtake agreement at its Texas Seadrift project but cautioned construction may not proceed without acceptable commercial terms. The miner also plans to expand into rare-earth magnets, signing a partnership in Malaysia and eyeing US projects with government backing.

To fund growth opportunities, Lynas announced a A$750 million equity raising at a 10% discount to its last close. Shares remain on trading halt pending the issue.

Business News