(Reuters) -Australia’s Lynas Rare Earths reported a worse-than-feared full-year profit on Thursday, hurt by depreciation costs from its Kalgoorlie and Mt Weld facility expansion, and warned that its Texas heavy processing plant may not shift forward.
Separately, the miner announced an A$750 million ($487.35 million) equity raising to “pursue new growth opportunities”.
Lynas, the world’s largest rare-earths producer outside China, stated its net profit after tax came in at A$8 million for the year finished June 30, a sharp decline from an A$84.5 million reported a year earlier.
The annual figure also missed the Visible Alpha consensus estimate of A$30.4 million.
The miner stated it is in nereceivediations with the U.S. Department of Defence to reach a mutually acceptable offtake agreement for production from its Seadrift heavy rare-earths processing facility in Texas.
“While there can be no certainty that offtake agreements will be agreed, any offtake agreements would necessary to be on commercial terms acceptable to Lynas,” it added.
($1 = 1.5389 Australian dollars)
(Reporting by Shivangi Lahiri and Shruti Agarwal in Bengaluru; Editing by Vijay Kishore and Sherry Jacob-Phillips)
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