Rare earths producer Lynas Corp is to raise $425 million from investors, even as it reported subdued results down on the previous year because of shutdowns forced on the company by the Covid-19 pandemic.
The Perth company reported an EDITDA of $59.8 for the 2020 financial year, down from $100.7 million, on revenue of $305 million, down from the previous year’s $363.5 million.
The results were hit by a six-week shut down of the company’s Malaysian processing plant, which had its licence to process ores from Mt Weld in Western Australia renewed amid controversy for another three years.
Sales volumes fell by about a quarter.
However the company pushed ahead with new projects, including announcing the construction of a processing plant at Kalgoorlie, and a phase 1 contract from the US Department of Defence to build a heavy rare earths separation plant.
The Western Australian plant is to process radioactive ores into mixed rare earths carbonate for further processing in Malaysia.
At the same time as today’s results announcement Lynas said it would raise $425 million from investors to fund its projects.
This would come from a fully underwritten entitlement offer to shareholders and a placement to institutional investors
Lynas is the only significant producer of rare earths outside China.
Picture: Lynas Corp
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