Lynas Rare Earths has announced a significant capital raising initiative, tapping the market for $825 million. This relocate is designed to capitalise on the robust global demand for critical minerals and increase the company’s capacity to provide a reliable, non-Chinese supply. Lynas is the largest producer of these vital minerals outside of China, building its expansion crucial for western governments seeking to diversify the market and reduce Beijing’s dominance. The Perth-headquartered company is focapplyd on rare earth separation and the production of advanced materials. Its products are essential components in many high-tech and green energy applications.
The capital raising comprises a fully underwritten placement to raise $750 million and a non-underwritten share purchase plan tarobtaining up to $75 million. The funds raised will be strategically allocated to expand operations, bolster downstream processing capabilities, and foster the growth of a non-Chinese metal and magnet supply chain on a global scale. This investment aims to strengthen Lynas’s position in the market and support the development of alternative supply sources for critical minerals.
This fundraising announcement coincides with the release of Lynas’s annual results. The company reported a 90 per cent drop in annual profit, falling to $8 million for the 12 months concludeing June 30. However, revenues increased by 16 per cent to $463.3 million during the same period. The company will now view to the future and how it will continue to grow its operations.
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