Lynas Rare Earths books higher net profit, revenue in fiscal H1'21 YOY

Lynas Rare Earths Ltd. booked a net profit of A$40.6 million in the first half of its fiscal 2021, surging from A$3.9 million in the same period of the prior fiscal year, as revenue grew to A$202.5 million from A$180.1 million with record sales during the December quarter.

"Despite ongoing uncertainty in the global economy and logistics/supply chain systems due to the effects of the pandemic, rare earths market settings were favorable and pricing for rare earths materials improved," Lynas CEO and Managing Director Amanda Lacaze said in a Feb. 26 statement.

The company's EBITDA almost doubled to A$80.6 million from A$44.2 million, while cost of sales slightly declined to A$150.8 million from A$151.6 million.

Meanwhile, Lynas said that its board resolved to repay to relevant authorities the Australian Jobkeeper subsidy and the Malaysian wage subsidy received, amounting to about A$1 million, in the first half of fiscal 2021.

The company added that its only remaining debt is the A$145 million Japan Australian Rare Earths loan facility, following the conversion of the remaining tranche of convertible bonds during the year.

The U.S. Defense Department said Feb. 1 that it awarded a US$30.4 million investment under the Defense Production Act to Lynas to build a light rare earth elements separation plant in Hondo, Texas.