26/02/2021 - 15:00

Lynas grows revenue, profit

26/02/2021 - 15:00

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Lynas Rare Earths has benefited from a favourable commodity market, having grown its net profit from $3 million to $40.6 million in the year to December 2020.

Lynas grows revenue, profit
Amanda Lacaze says the rare earths market has been positive despite challenges presented by COVID-19. Photo: Attila Csaszar

Lynas Rare Earths has benefited from a favourable commodity market, having grown its net profit from $3 million to $40.6 million in the year to December 2020.

Lynas grew its revenue by 12 per cent in 1H21 to record $202.5 million, contributing to an 82 per cent surge in earnings before interest, tax, depreciation and amortisation (EBITDA) of $80.6 million.

Managing director Amanda Lacaze said rare earths market settings were favourable despite ongoing uncertainty as a result of COVID-19.

Lynas, which owns the Mt Weld rare earths deposit in Western Australia, raised $425 million during the first half, which went towards the company’s proposed Kalgoorlie facility. The plant will be used to locally process rare earth concentrate, which currently gets shipped to Lynas’ Malaysian facility.

The business will also develop a light rare earths separation plant in Texas after signing an agreement with the US government in January.

Lynas expects the business and the US Department of Defense will each contribute about $US30 million towards the project.

“Lynas has a unique position in an exciting market,” Ms Lacaze said.

“We are the second largest producer of separated rare earths in the world and have a proven track record in developing and operating our production assets.

“Our team remains absolutely focused on serving our long-term strategic customers with high quality products and on contributing to the development of a sustainable rare earths supply chain outside of China.”

Shares in Lynas closed up 6 per cent to trade at $5.98.

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