Lynas’ first-half profit soars

Record sales and a buoyant market have led to Lynas Rare Earths reporting a 286 per cent increase in first-half profit to $157 million.

Lynas, which operates the Mt Weld mine near Laverton, said it had achieved record sales revenue of $315 million in the six months to December 31, up from $202.5 million on the same time in 2020.

The company’s underlying earnings (EBITDA) more than doubled to about $190 million.

Lynas’ shares rose 7 per cent on the news to close at $9.57 this afternoon.

Chief executive Amanda Lacaze said the first-half result reflected a buoyant market and strong customer demand for rare earths.

“Our customers expect demand will grow strongly as we move further into FY22, and we are positioning the business to meet accelerating demand through our... growth projects,” she said.

Included in those projects is a $500 million rare earths processing facility under construction in Kalgoorlie, for which Lynas has received all approvals.

The plant is intended to treat rare earths from Mt Weld, with product to then be sent to Fremantle Port for export. It’s expected to be operational by July 2023.

Construction is fully funded, with Lynas having raised $425 million as well as received a $14.8 million grant from the federal government.

The company ended the first half of FY22 with about $674 million in cash.