Lynas Rare Earths Ltd (ASX: LYC) is seeing its share price rise on Wednesday, despite a general decline in the broader market. Shares of the rare earths miner closed at $6.79 yesterday but are trading at $6.86 this morning, reflecting a 1.0% increase. This uptick occurs while the S&P/ASX 200 Index (ASX: XJO) is down by 0.4% at the same time.
Highlights from the FY 2024 Results
Lynas released its results for the full year ending June 30, 2024, revealing some significant financial metrics:
- Revenue: The company reported $463.3 million, marking a 41.6% decrease compared to the previous year.
- Net Profit After Tax (NPAT): NPAT stood at $84.5 million, down 72.8% from FY 2023.
- Earnings Before Interest and Tax (EBIT): EBIT fell to $75.2 million, a 76.2% drop year on year.
- Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA): EBITDA decreased by 65.0% to $132.1 million.
- Cost of Sales: The cost of sales was $330.6 million, down from $399.9 million the prior year.
These declines in financial performance reflect a challenging year for Lynas, influenced by subdued demand from China and persistently low rare earths market prices.
Key Developments for Lynas in FY 2024
Despite the challenging financial results, Lynas achieved several notable milestones during the year:
- Malaysian Operating Licence: Lynas secured a variation for its Malaysian operating licence, allowing it to continue crucial operations such as cracking and leaching in Malaysia.
- Kalgoorlie Facility: The company commenced production at its new Kalgoorlie Rare Earths Processing Facility in Western Australia. Lynas CEO Amanda Lacaze praised the swift construction and commissioning of the facility, completed in just over two years.
However, neodymium and praseodymium (NdPr) production saw an 8% decline from the previous year, primarily due to significant work at Lynas Malaysia. As of June 30, Lynas had $523.8 million in cash and cash equivalents, a decrease from $1.01 billion the previous year.
Management's Outlook
CEO Amanda Lacaze commented on the results, acknowledging both the challenges and successes of the year. She noted recent improvements in NdPr market prices since May 2024 and emphasized the company's strong cost position and high-grade Mt Weld resource.
Lacaze highlighted Lynas' ability to manage market volatility and improve average selling prices towards the end of FY 2024. Looking forward, Lynas remains committed to investing in the global rare earths supply chain and focusing on fulfilling customer needs, enhancing internal efficiencies, and creating value for shareholders in FY 2025.
The difficult market conditions, Lynas Rare Earths Ltd (ASX: LYC) has demonstrated resilience and a strategic approach to navigating the challenges of the rare earths industry.