The Lynas Rare Earths Ltd (ASX: LYC) share price is down 3.15% in morning trade, to $6.45 per share.
Below we take a look at the ASX rare earths producer's full year financial results for the year ending 30 June, 2021 (FY21).
Lynas share price lifts on record results
- Revenue of $489.0 million, an increase of 60% from $305.1 million in FY20
- Net profit after tax (NPAT of $157.1 million, compared to a loss of $19.4 million the previous year
- Earnings before interest taxes, depreciation and amortisation (EBITDA) of $235.3 million, up from $59.7 million in FY20
- Cash and cash equivalents as at 30 June of $680.8 million, compared to $101.7 million the prior year
What happened during the reporting period for Lynas Rare Earths?
Lynas achieved record sales in the June quarter of FY21.
The company said it managed to keep costs well controlled as it benefited from "favourable market conditions" for rare earths. It noted that global governments are taking action to diversify rare earths supplies, aware of the current supply chain vulnerabilities. Countries taking action include Japan, India, the United States, the European Union and Australia.
The company signed 2 separate funding contracts with the United States during the reporting period.
Lynas also had a successful $425 million capital raise during the year. It plans to use the funds on its Lynas 2025 foundation projects, with a focus on its Kalgoorlie Rare Earths Processing plant and related upgrades for its Lynas Malaysia plant.
Early works have started at its Kalgoorlie site, and the first Kalgoorlie-based employees have been hired.
What did management say?
Commenting on the results, Lynas Rare Earths' CEO, Amanda Lacaze said:
We are pleased to have delivered a record profit for our shareholders. This has been achieved whilst maintaining COVID-19 health and safety protocols for our people and communities, responding to logistics challenges and managing inventory to meet our customers' needs…
Throughout the year, we reached a number of milestones related to our Lynas 2025 growth strategy which is focused on building capacity to meet forecast demand growth.
What's next for Lynas?
Like most industries, Lynas cautioned that the pandemic continues "to present significant operational challenges". It said this is especially true in Malaysia, but noted that 94% of its Malaysian staff have now had 2 doses of vaccine.
Looking ahead, Lacaze said, "Lynas is focused on serving customer demand and developing sustainable Rare Earths supply chains as we continue to progress our growth plans to meet future demand from high growth industries".
The Lynas share price is up 184% over the past 12 months.
