(Reuters) -Australia’s Lynas Rare Earths reported a worse-than-feared full-year profit on Thursday, hurt by depreciation costs from its Kalgoorlie and Mt Weld facility expansion, and warned that its Texas heavy processing plant may not move forward.
Separately, the miner announced an A$750 million ($487.35 million) equity raising to “pursue new growth opportunities”.
Lynas, the world’s largest rare-earths producer outside China, said its net profit after tax came in at A$8 million for the year ended June 30, a sharp decline from an A$84.5 million reported a year earlier.
The annual figure also missed the Visible Alpha consensus estimate of A$30.4 million.
The miner said it is in negotiations with the U.S. Department of Defence to reach a mutually acceptable offtake agreement for production from its Seadrift heavy rare-earths processing facility in Texas.
“While there can be no certainty that offtake agreements will be agreed, any offtake agreements would need to be on commercial terms acceptable to Lynas,” it added.
($1 = 1.5389 Australian dollars)
(Reporting by Shivangi Lahiri and Shruti Agarwal in Bengaluru; Editing by Vijay Kishore and Sherry Jacob-Phillips)
Comments