The Lynas Rare Earths Ltd (ASX: LYC) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed yesterday trading for $6.79. In morning trade on Wednesday, shares are swapping hands for $6.86 apiece, up 1.0%.
For some context, the ASX 200 is down 0.4% at this same time.
This outperformance comes following the release of Lynas' results for the full year ending 30 June (FY 2024).
Here are the highlights.
Lynas share price shakes off profit loss
- Revenue of $463.3 million, down 41.6% from FY 2023
- Net profit after tax (NPAT) of $84.5 million, down 72.8% year on year
- Earnings before interest and tax (EBIT) of $75.2 million, down 76.2% from FY 2023
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $132.1 million, down 65.0%
- Cost of sales were $330.6 million, down from $399.9 million the prior year
What else happened with the ASX 200 rare earths miner in FY 2024?
The big retrace in earnings and profits that has pressured the Lynas share price over the reporting period comes after a year in which demand from China was said to remain subdued, with rare earths market prices remaining "stubbornly low".
Among the highlights of FY 2024 buoying investor sentiment, the ASX 200 rare earths miner received a variation for its Malaysian operating licence. This enabled Lynas to continue cracking and leaching in Malaysia.
Lynas also achieved first production from its new Kalgoorlie Rare Earths Processing Facility, located in Western Australia.
"The construction and commissioning of such a large facility in just over two years from receipt of full construction approvals is a credit to the skills and perseverance of our Kalgoorlie team and the support received from our Malaysian experts," Lynas CEO Amanda Lacaze said.
Neodymium and praseodymium (NdPr) production was down 8% from FY 2023, largely impacted by the miner's major works program at Lynas Malaysia.
As at 30 June, Lynas had closing cash and cash equivalents of $523.8 million, down from $1.01 billion the prior year.
What did management say?
"2024 was both an exciting and challenging year for Lynas Rare Earths," Lacaze said, commenting on the results helping lift the Lynas share price today.
"Pleasingly," she noted, "there have been positive movements in the NdPr market price since May 2024."
Lacaze added:
We are proud of our competitive cost position and as an integrated rare earths producer, we continue to benefit from the inherent advantages of the high-grade Mt Weld rare earths resource.
Lynas has over a decade of experience as a supplier of separated rare earths and this means we are well prepared to weather market price volatility. During the year we carefully managed sales and inventory to maximise sales prices.
Our average selling price improved towards the end of FY24 as we proactively managed the timing of sales, especially for Heavy Rare Earths where pricing was particularly volatile.
What's next?
Looking to what could impact the Lynas share price in the year ahead, Lacaze said, "We continue to see investment and policy initiatives that will support a growing global rare earths supply chain. Lynas continues to invest to ensure we are able to grow with the market."
Lynas said that in FY 2025, the company will be focused on fulfilling customer needs, maximising internal efficiencies, and delivering value for its shareholders.
Lynas share price snapshot
With today's intraday moves factored in, the Lynas share price is down 1% over 12 months.
