Lynas Rare Earths beats annual profit view, shares rise 2%
Rewrites throughout, adds share moves, details of results, and analyst comments
By Shivangi Lahiri
Aug 28 (Reuters) -Australia's Lynas Rare Earths LYC.AX posted a smaller-than-expected fall in annual profit on Wednesday, helped by lower operating costs amid weak prices and subdued China demand, sending its shares 2% higher in early trade.
The world's largest producer of rare earths outside China posted a net profit attributable of A$84.5 million ($57.38 million) for the year ended June 30, ahead of a Visible Alpha consensus of A$66.1 million.
However, the profit was sharply below the A$310.7 million logged in the prior year, hurt by weak China demand for rare earth metals and "stubbornly low" prices, Lynas said.
"FY24 results were better than our and Visible Alpha consensus expectations, resulting from lower operating costs vs. forecasts," analysts at Jefferies wrote in a note.
Shares of the rare earths producer rose 2% to A$6.930 by 0027 GMT, while the benchmark S&P/ASX 200 index .AXJO was down about 0.4%.
Pointing to some green shoots in market prices since May, Lynas said it continues to expect investment and government initiatives for green transition to support a "growing global rare earths supply chain".
"We continue to see limited price (rare earths) recovery in the near term, and would need to see stronger lead indicators for demand growth before becoming more constructive," Jefferies analysts said.
"We remain positive on the medium- to longer-term outlook," they said, adding that Lynas was well positioned to capture any market strength.
Lynas flagged a delay to the construction of its U.S. heavy rare earths plant planned for this year, citing permit issues related to wastewater management.
The firm said it was "unlikely" that the issue would be resolved before the end of 2024.
The company expects to spend between A$400 million and A$500 million on capital in fiscal 2025, much ahead of the A$320.7 million consensus by Visible Alpha.
($1 = 1.4725 Australian dollars)
Reporting by Shivangi Lahiri and Sameer Manekar in Bengaluru; Editing by Arun Koyyur, Tasim Zahid and Subhranshu Sahu
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
