Lynas Rare Earths tops full-year profit view, sees demand pickup in China
Aug. 28, 2024 9:29 AM ETLynas Rare Earths Limited (LYSCF) Stock, LYSDY StockBy: Carl Surran,
Lynas Rare Earths (OTCPK:LYSCF) (OTCPK:LYSDY) +3.4% in Australian trading on Wednesday after reporting a smaller than expected drop in full-year profit, helped by lower operating costs.
Lynas (OTCPK:LYSCF) (OTCPK:LYSDY) said net profit for the year ended June 30 plunged to A$84.5M from A$310.7M in the previous year, which the company attributed to weak China demand for rare earth metals and "stubbornly low" prices, but came in ahead of a Visible Alpha consensus of A$66.1M.
Lynas (OTCPK:LYSCF) (OTCPK:LYSDY) said it continues to expect investment and government initiatives for the green transition to support a "growing global rare earths supply chain."
"We are seeing some pickup of demand, particularly inside China, and some destocking of inventories that had been built up on the back of previous demand," Lynas (OTCPK:LYSCF) (OTCPK:LYSDY) CEO Amanda Lacaze told Bloomberg in an interview.
Prices of rare earths have been smacked by a glut in supply, with a Shanghai benchmark index showing they fell nearly 70% from a peak in February 2022, but prices have rebounded 17% from a bottom reached in March, according to Bloomberg data.