Home / Business and Economy / Lynas Rare Earths Sees Record Profit Amidst Easing China Exports
Lynas Rare Earths Sees Record Profit Amidst Easing China Exports
26 Feb
Summary
- Lynas Rare Earths achieved its best first-half profit in three years.
- Higher sales volumes and commodity prices drove the profit increase.
- Power failures at the Kalgoorlie plant caused a production slump.
Australia's Lynas Rare Earths announced its strongest first-half profit in three years, reporting A$80.2 million in net profit after tax for the six months ending December 31. This performance significantly surpasses the A$5.9 million profit from the previous year.
The company's financial success is attributed to increased sales volumes and higher commodity prices. This favorable market condition has been influenced by China's relaxation of export controls, which helped alleviate a prior supply glut and boost domestic benchmark prices.
Despite the robust profit, the net profit fell short of analyst estimates. Furthermore, power outages at Lynas' Kalgoorlie plant in Western Australia during November led to a notable reduction in production and increased the cost of sales. The company did not issue an interim dividend.
($1 = 1.4037 Australian dollars)
