Australian rare earth company reports a 72.2 percent drop in profits.
Australian rare earth mining company Lynas has reported a significant decline in profits for the 2024 fiscal year. After earning $ 211 million in 2023, the company disclosed a profit of only $57 million for 2024. Despite this sharp decrease, the results still exceeded analysts’ expectations, according to Reuters, among others.
The decline in profit—over 70 percent—is attributed to a challenging market environment, including low demand in China and currently lower prices for rare earths. However, CEO Amanda Lacaze noted that there have been positive developments since May. She also highlighted the company’s progress during the fiscal year, such as commissioning a processing plant in Australia that produces mixed rare earth carbonate, which is then sent to Malaysia for further processing. Lynas also operates a refinery there.
The company is working on a similar facility in Texas, where initial groundwork was expected to begin this year. However, issues related to wastewater management have arisen, and resolving them likely won’t happen in 2024, leading to potential delays, according to the annual report.
Meanwhile, there are no updates on the merger talks with U.S. company MP Materials, which were first speculated in February and later confirmed by Lynas. In an interview with Bloomberg, Lacaze reiterated that no agreement was reached with the operator of the Mountain Pass mine.
The full report for the 2024 fiscal year can be found here (PDF).
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