Lynas announces $750m equity raise, full-year profit falls 91% despite revenue bump
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More news: Lynas Rare Earths has announced plans to raise about $750 million through a fully underwritten pro-rata placement and a further $75 million through a non-underwritten share purchase plan.
The shares will be issued at $13.25 each, a 10% discount to the close price on Wednesday and the volume weighted average price of $14.50.
The rare earth producer also announced it achieved full-year net profit of $8 million, down 90.5% on last year despite an increase in revenue amid depreciation, investment in the Mt Weld expansion and lower than nameplate production at the Kalgoorlie facility.
Analysts expected the miner to report a $31.67 million profit, according to Visible Alpha figures.
Revenue climbed 20% year on year to $556.5 million, ahead of market estimates of $547.28 million.
Production of neodymium and praseodymium (NdPr) — two of its core products — increased 16% to 6,558 tonnes while total rare earth oxide production slipped 4.1% to 10,462 tonnes.
The average China domestic price of NdPr rose from US$44 ($67.59) per kilogram to US$55 per kilogram. The average total selling price per kilogram of rare earth oxide also rose from $38.1 to $50.6.
The company has also announced its Towards 2030 strategy, which the equity raise will help fund. This includes plans to expand NdPr separation capacity to 12 kilo tonnes per annum, expand heavy rare earth separation capacity at its Malaysia facility and develop value-added specialty rare earth manufacturing capability.
Lynas also said it is seeking expand into the "outside China metal and magnet supply chain" and hopes to work with or invest in companies with expertise on these products.
The rare earth miner also said it is in discussions with the US Department of Defense "to negotiate a mutually acceptable offtake agreement for production" amid uncertainty on whether construction of a heavy rare earth processing facility in Texas would proceed.
Lynas Rare Earths enters trading halt ahead of equity raise
The news: Lynas Rare Earths has entered a trading halt ahead of an announcement relating to an equity capital raise which would include an institutional placement and a share purchase plan.
The context: Lynas is also due to release its FY25 results later today, with managing director and chief executive officer Amanda Lacaze scheduled to deliver an analyst and shareholder briefing at 11:00am AEST.
