Lynas Rare Earths reported a net profit of A$222.4 million for the year ended June 30, up from A$8 million a year earlier, though below consensus estimates of A$242.5 million. The company’s shares fell as much as 8% following the results. Revenue growth was driven by a 59% increase in the average selling price to A$80.7 per kilogram, supported by floor price agreements with Japanese and U.S. customers that reduced volatility. Heavy rare earth sales also contributed to the improvement.
Interim CEO Pol Le Roux said Lynas is advancing plans for a magnet processing facility in the United States and is in early-stage discussions with project developers globally to secure new mine supply, particularly from ionic clay deposits. The company expects to announce new supply deals in the coming months. Le Roux noted that progress on the U.S. facility remains on track, with further developments expected.
Operational challenges at Lynas’ Mt Weld mine in Australia and rising costs have impacted production, though quality issues at the Kalgoorlie processing plant have been resolved. The company is also searching for a new CEO following Amanda Lacaze’s retirement. Analyst Daniel Morgan of Barrenjoey said Lynas has addressed operational problems, noting improved stability at its facilities.
Lynas’ expansion efforts coincide with the expiration of a one-year suspension on China’s export controls for several medium and heavy rare earth products in November. China accounts for roughly 90% of global rare earth production, underscoring the strategic importance of Lynas’ diversification strategy.
