As expected, the slump in rare earth prices and lower production and sales took a toll on Lynas (ASX:LYC) in the six months to December, significantly impacting the profit of the world’s biggest producer of these essential minerals outside China.
Earnings for the half fell to $39 million from $151 million a year earlier, with revenue slumping to $234.8 million from $370 million.
CEO Amanda Lacaze said on Monday, “The 2024 financial year is a transitional year for Lynas, and the progress achieved in the first half of the year has established an excellent foundation for our future success."
“This included the variation to the Malaysian operating license, which allows for the continued import and processing of lanthanide concentrate from our Mt Weld mine and provides a continuing path for our operations in Malaysia.
“Notwithstanding the exciting expansion and exploration activities undertaken in the half-year, and the low market price environment, I am pleased to report a profitable first half for the business.
“During the half-year, Lynas invested $347 million in capital projects, primarily related to the Lynas Kalgoorlie and Mt Weld expansion projects, and ended the period with a strong cash balance of $686.1 million,” she added.
