Lynas shares drop as first-half profit tumbles 85%
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More news: Shares in Lynas Rare Earths fell after the miner reported a steep decline in first-half net profit, impacted by subdued demand from China and lower rare earths market prices.
Lynas shares were down 3.7% to $6.71 at 2pm AEDT, having gained nearly 20% over the last 12 months.
Low prices weigh on Lynas' first-half profit
The news: Rare earths producer Lynas has posted an 85% slump in first-half net profit amid challenging market conditions and lower prices for its minerals.
The numbers: Net profit for the six months to December fell to $5.9 million from $39.5 million a year ago. Revenue was up 8% to $254.3 million. The company will not pay any interim dividend.
The context: CEO Amanda Lacaze said Lynas increased production and sales volume during the half year, but the reduced profit reflected low market prices. NdPr production volume rose 22%, while sales volume was up 23%, but this was offset by the average China domestic price decreasing 13% over a year to USD49/kg in December.
The company is investing in the Mt Weld expansion projects in Western Australia, and is also working on the planned US Rare Earths Processing Facility.
The source: ASX
