Australia’s only substantial rare earths producer is rallying again today after the release of their full year results this morning.
This morning, Lynas rare earths announced their full year results, the highlights of which included:
Revenue up 88% to $920 million
Net profit after tax up a massive 244% to $540.8 million
Earnings before interest, taxation, depreciation and amortisation (EBITDA) up 156% to $601.2 million
Cash and cash equivalents at $965.6 million
Lynas has seen strong demand from the United States and other nations looking to secure sources of the critical minerals outside of the Middle Kingdom. The rare earths producer didn’t offer specific guidance for next year however they did speak to their expansion initiatives which will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.
The company is also working to break the overall monopoly of China in the rare earths space. An example of this was back in June where the US Department of Defence signed a $120 million deal with the company to build a rare earths separation facility in China.
Overall, the company’s prospects are looking up and management are over the moon with the year’s performance, with the chief executive Amanda Lacaze stating:
“Favourable market conditions and strong demand for Lynas’ rare earth materials saw sales revenue increase by 88.1% and net profit after tax (NPAT) increase by 244% from the 2021 result. Rare earths prices were sustained at high levels during the second half of the year, and the NdPr market price remained 70% to 80% higher than in the same period last year.”