AUSTRALIA’S Lynas Rare Earths posted a 74 per cent drop in its first-half profit on Monday, as prices for its main product neodymium and praseodymium (NdPr) fell due to increased production and subdued demand growth in China.
Rare earth prices have dropped sharply in recent times as demand in China, especially in the country’s appliance sector, fell with the construction downturn.
Lynas said operations at its Malaysia plant recommenced in January after it undertook significant “upgrade works” during a six-week temporary shutdown of the plant in October.
The world’s largest producer of rare earths outside China said net profit after tax for the six months ended Dec 31 was A$39.5 million (S$34.8 million), compared with A$150.1 million reported a year ago.
The company, which held unsuccessful merger talks earlier this year with US-based MP Materials, reported first-half revenue of A$234.8 million, down 37 per cent from a year ago. REUTERS
