- Pure play rare earths minerals producer Lynas Rare Earths is the world’s only significant rare earths minerals producer outside of China.
- The company is expanding its rare earth minerals processing capability with new facilities in Australia and the US.
- Analysts are bullish on Lynas.
Over the past four fiscal years the financial performance of Lynas Rare Earths has had its ups and downs, with a significant drop in both revenue and profit in FY 2023.
Lynas Rare Earths Financial Performance
Source: ASX
Revenues dropped 19.6% and net profit after tax (NPAT) fell 42.5%, as the price of rare earth minerals declined from 2022 highs.
The company’s growth plans include expansion of the mining capacity at Mt Weld in Australia and substantial expansion of its processing capability with new facilities in Malaysia, here in Australia, and in the US. The US facility has the support of the US government for supply to their Department of Defense.
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Rare Earth minerals are vital for current and future digital and green technologies.
Over five years LYC is up 261.9%. Year over year the share price is down 34.7%.
Source: ASX
An analyst at Catapult Wealth has a BUY recommendation on Lynas shares, citing the company’s operating license for its rare earth minerals processing operation in Malaysia and the expansion of production.
Marketscreener.com has an analyst consensus BUY rating on Lynas shares, with nine of the analysts reporting at BUY, two at OUTPERFORM, and 2 at HOLD. The Wall Street Journal also has a consensus BUY rating on LYC with ten analysts at BUY, one at OVERWEIGHT, and one at HOLD.
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