Australia’s Lynas, a leading rare-earths miner outside China, reported a half-year profit exceeding expectations, boosting its shares by 2.6% to A$5.99. Despite facing a challenging market with weak commodity prices and slow demand from China, Lynas posted a net profit of A$39.5 million for the six months ending December 31, surpassing the consensus estimate of A$25.7 million by Visible Alpha.
The company attributes potential future market improvements to China’s economic recovery, noting early positive signs such as rising concentrate prices in China, moderated production growth in Chinese quotas, and recent industry feedstock supply agreements.
During the December quarter, Lynas undertook significant upgrades at its Malaysia plant, enhancing its separation capacity to 10,500 tonnes per year for neodymium and praseodymium, essential for magnets in various sectors. Additionally, the company completed construction at its Kalgoorlie processing facility in Western Australia, receiving its first rare-earths feed in December.
CEO Amanda Lacaze described the 2024 financial year as transitional, laying a solid foundation for Lynas’s future success. Analysts point to the operational startup of the Kalgoorlie plant and the expansion at Mt Weld as critical milestones, though they caution about ongoing challenges, particularly from the slowing construction sector in China. 
